✨ Commerce Act Decision
NEW ZEALAND GAZETTE, No. 146
29 SEPTEMBER 2008
COMMERCE ACT
(DECISION NOT TO DECLARE CONTROL – 1 APRIL 2006 TO 31 MARCH 2007: ALPINE ENERGY LIMITED, AURORA ENERGY LIMITED, COUNTIES POWER LIMITED, EASTLAND NETWORK LIMITED, ELECTRICITY ASHBURTON LIMITED, ELECTRICITY INVERCARGILL LIMITED, MAINPOWER NEW ZEALAND LIMITED, NETWORK TASMAN LIMITED, ORION NEW ZEALAND LIMITED, POWERCO LIMITED, TOP ENERGY LIMITED, UNISONNETWORKS LIMITED, VECTOR NETWORKS LIMITED, WAIPA NETWORKS LIMITED;
1 APRIL 2003 TO 31 MARCH 2007: NELSON ELECTRICITY LIMITED, NETWORK WAITAKI LIMITED, SCANPOWER LIMITED)
NOTICE 2008
Part 4A of the Commerce Act 1986 ("the Act") came into effect on 8 August 2001 and, among other things, requires the Commerce Commission ("Commission") to implement a targeted control regime for the regulation of large electricity lines businesses (lines businesses)—namely electricity distribution businesses (distribution businesses) and Transpower New Zealand Limited.
The targeted control regime
Section 57E of the Act provides that the purpose of subpart 1 of Part 4A is to promote the efficient operation of markets directly related to electricity distribution and transmission services through targeted control for the long-term benefit of consumers by ensuring that suppliers:
(a) are limited in their ability to extract excessive profits; and
(b) face strong incentives to improve efficiency and provide services at a quality that reflects consumer demands; and
(c) share the benefits of efficiency gains with consumers, including through lower prices.
Under section 57G(1)(b) of the Act, the Commission must set thresholds for the declaration of control in relation to lines businesses.
On 6 June 2003, after consulting with interested parties as to possible thresholds, the Commission set two thresholds—a CPI-X price path threshold and a quality threshold—applicable until 31 March 2004 for distribution businesses. These initial thresholds were set by the Commerce Act (Electricity Lines Thresholds) Notice 2003 published as a Supplement to the New Zealand Gazette, 6 June 2003, No. 62, page 1685.
The Commission reset the thresholds for all distribution businesses for a five-year regulatory period from 1 April 2004. These reset thresholds were set by the Commerce Act (Electricity Distribution Thresholds) Notice 2004 published as a Supplement to the New Zealand Gazette, 31 March 2004, No. 37, page 927.
The process for making decisions on declarations of control is set out in section 57H, which provides that the Commission must:
(a) assess large electricity lines businesses against the thresholds set under this subpart; and
(b) identify any large electricity lines business that breaches the thresholds; and
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NZ Gazette 2008, No 146
✨ LLM interpretation of page content
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Decision Not to Declare Control Under Commerce Act
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🏭 Trade, Customs & IndustryCommerce Act, Electricity Companies, Control Declaration, Thresholds, Regulation