New Zealand Gazette – 2008 – No. 95

Page 2548

✨ Commerce Act Decision Notice



2548 NEW ZEALAND GAZETTE, No. 95 6 JUNE 2008

COMMERCE ACT

(DECISION NOT TO DECLARE CONTROL – 8 AUGUST 2001 TO
31 MARCH 2006: ELECTRICITY DISTRIBUTION BUSINESSES: ALPINE
ENERGY LIMITED, AURORA ENERGY LIMITED, ELECTRICITY
INVERCARGILL LIMITED, MAINPOWER LIMITED, NELSON
ELECTRICITY LIMITED, NETWORK TASMAN LIMITED, NETWORK
WAITAKI LIMITED, NORTHPOWER LIMITED, ORION NEW ZEALAND
LIMITED, POWERCO LIMITED, SCANPOWER LIMITED, TOP ENERGY
LIMITED, THE LINES COMPANY LIMITED, WAIPA NETWORKS
LIMITED AND WEL NETWORKS 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 New Zealand 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



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2008, No 95


Gazette.govt.nz — PDF NZ Gazette 2008, No 95




✨ LLM interpretation of page content

🏭 Decision Not to Declare Control of Electricity Distribution Businesses

🏭 Trade, Customs & Industry
Commerce Act, Electricity Distribution, Decision, Control Declaration, Targeted Control Regime