✨ Commerce Act Notice
COMMERCE ACT
(DECISION NOT TO DECLARE CONTROL – 6 JUNE 2003 TO 31 MARCH 2007: ELECTRICITY DISTRIBUTION BUSINESSES: HORIZON ENERGY DISTRIBUTION LIMITED AND WESTPOWER LIMITED)
NOTICE 2009
Pursuant to Part 4A of the Commerce Act 1986 and section 13 of the Interpretation Act 1999, the Commerce Commission (the "Commission") gives the following notice.
NOTICE
-
Title
(1) This notice is the Commerce Act (Decision Not to Declare Control – 6 June 2003 to 31 March 2007: Electricity Distribution Businesses: Horizon Energy Distribution Limited and Westpower Limited) Notice 2009.
(2) This notice supersedes the Commerce Act (Decision Not to Declare Control – 8 August 2001 to 31 March 2007: Electricity Distribution Businesses: Horizon Energy Distribution Limited and Westpower Limited) Notice 2008 (New Zealand Gazette, 4 August 2008, No. 121, page 3169).
-
Background
Part 4A of the Commerce Act 1986 ("the Act") came into effect on 8 August 2001 and, among other things, required the 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.
Section 57E of the Act provided 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 was required to 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
Next Page →
NZ Gazette 2009, No 185
✨ LLM interpretation of page content
🏭
Decision Not to Declare Control for Electricity Distribution Businesses
(continued from previous page)
🏭 Trade, Customs & IndustryCommerce Act, Electricity Distribution, Horizon Energy, Westpower, Regulatory Control
- Commerce Commission