New Zealand Gazette – 2008 – No. 95

Page 2555

✨ Electricity Distribution Notices

6 JUNE 2008 NEW ZEALAND GAZETTE, No. 95 2555

as Waipa Networks delayed passing on the increase in transmission
charges, it, rather than its customers, absorbed these costs. Accordingly,
Waipa Networks’ 2003 price path breach caused no detriment to
customers;
Waipa Networks’ reliability performance since the 2004 assessment
period quality breach does not indicate a deterioration against its
thresholds; and
the Commission has no other section 57E concerns.

WEL Networks Limited

The 2004 price path breach was caused by differences between budgeted
and actual pass-through costs;
in line with the objective of the price path threshold for 2004, WEL
Networks did not increase its prices during the 2004 assessment period;
the 2004 Notice required WEL Networks to set its prices so that its initial
allowable revenue would not have breached the price path threshold at the
second assessment date. This in effect required WEL Networks to reduce
its prices to pass on the reduction in pass-through costs going forward;
and
the Commission has no other section 57E concerns.

A more comprehensive explanation of the reasons for the Commission’s decisions
not to declare control of is contained in the paper titled Commerce Commission,
Regulation of Electricity Lines Businesses, Targeted Control Regime, Reasons for Not
Declaring Control of the 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 dated 6 June 2008. A copy of this paper can be located on the
Commission’s website:

www.comcom.govt.nz

Any comments and questions on this notice may be sent by email to:
electricity@comcom.govt.nz; or by mail to Network Performance Branch, Commerce
Commission, P.O. Box 2351, Wellington; or by facsimile (04) 924 3700.

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