✨ Commerce Act Notice
2460 NEW ZEALAND GAZETTE, No. 90 30 MAY 2008
COMMERCE ACT (DECISION NOT TO DECLARE CONTROL:
VECTOR 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.
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
(c) determine whether or not to declare all or any of the goods or services
supplied by all or any of the identified large electricity lines businesses to
be controlled, taking into account the purpose of this subpart; and
(d) in respect of each identified large electricity lines business,—
(i) make a control declaration; or
(ii) publish the reasons for not making a control declaration in the
Gazette, on the Internet, and in any other manner (if any) that the
Commission considers appropriate.
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.
Before making a declaration of control, the Commission is required under section
57I(1) to:
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2008, No 90
Gazette.govt.nz —
NZ Gazette 2008, No 90
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Decision not to declare control: Vector Limited
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🏭 Trade, Customs & IndustryCommerce Act, Vector Limited, Control Declaration, Electricity Lines, Thresholds