✨ Commerce Act, Electricity Distribution
4 AUGUST 2008 NEW ZEALAND GAZETTE, No. 121 3171
Before making a declaration of control, the Commission is required under section 57I(1) to:
(a) publish its intention to make a declaration and invite interested persons to give their views on the matter; and
(b) give a reasonable opportunity to interested persons to give those views;
and
(c) have regard to those views.
Assessment and identification of threshold breaches
The Commission has assessed Horizon Energy Distribution Limited and Westpower Limited, and their respective threshold breaches, during the assessment periods ended 6 September 2003, 31 March 2004, 31 March 2005, 31 March 2006 and 31 March 2007.
The Commission has assessed Horizon Energy Distribution Limited against its thresholds, and has identified Horizon Energy Distribution Limited as breaching the price path threshold during the assessment period ended 31 March 2007 and the quality threshold during the assessment periods ended 31 March 2004 and 31 March 2005.
The Commission has assessed Westpower Limited against its thresholds, and has identified Westpower Limited as breaching the price path threshold during the assessment period ended 31 March 2007 and the quality threshold during the assessment periods ended 31 March 2004, 31 March 2005 and 31 March 2007.
Decisions Not to Declare Control
The Commission has determined that it is consistent with section 57E of the Act to not make a declaration of control under Part 4A in respect of electricity distribution services supplied by Horizon Energy Distribution Limited and Westpower Limited, for the following reasons:
Horizon Energy Distribution Limited
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The price path breach during the 2007 assessment period was solely caused by the interim rebate provided by Transpower. The Commission considers that Horizon appropriately deal with the interim rebate by returning the full amount, plus interest, to its customers;
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The Commission’s review of Horizon, in response to breaches of the quality threshold, found no evidence of inappropriate engineering, management practices, or poor network condition;
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During the engineering review the Commission assessed the circumstances of the breach, and found there were extraordinary impacts on system reliability experienced in 2004 and 2005;
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Horizon’s reliability results since the 2005 assessment do not indicate a deterioration in its performance against its thresholds; and
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The Commission has no other section 57E concerns.
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NZ Gazette 2008, No 121
✨ LLM interpretation of page content
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Decision Not to Declare Control for Electricity Distribution Businesses
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🏭 Trade, Customs & IndustryCommerce Act, Electricity Distribution, Horizon Energy Distribution Limited, Westpower Limited