11 OCTOBER 2012

NEW ZEALAND GAZETTE, No. 124

3553

Any revaluations will be treated as income for the purposes of assessing profitability. This is consistent with the equivalent input methodologies for asset valuation that are applicable to customised price-quality path proposals, and information disclosure regulation.

The treatment of taxation as applicable to default price-quality paths is based on the customised price-quality path input methodologies with some simplified assumptions to meet the low-cost intent of default price-quality paths. These assumptions are set out below.

(a) Regulatory tax allowance is calculated by applying a tax formula consistent with that used for customised price-quality path input methodologies, and reliant on an income/revenue value to be determined by the Commission during the consultation process for starting prices, ie, under section 53P(2).

(b) Tax depreciation is to be calculated using an average diminishing value rate applied to aggregated values.

(c) Tax losses are those already disclosed for the base year, if available, or in responses to a section 53ZD notice otherwise.

(d) Discretionary discounts and customer rebates for tax purposes will be set to nil.

Further details of this approach are available in our reasons paper for the re-determination. The overall approach and reasons for the existing input methodologies for cost allocation, asset valuation, and treatment of taxation (which we have simplified for default price-quality paths) are set out in Chapters 3 to 5 of the December 2010 Input Methodologies Reasons Paper.

The re-determined input methodologies also amend the cost of capital input methodology that applies to default price-quality paths. The amendment sets out how a term credit spread differential allowance must be estimated. This amendment aligns the calculation of term credit spread differential allowances with the amount determined in accordance with the information disclosure input methodologies, using simplified assumptions for each disclosure year during the regulatory period.

Copies of the re-determinations and reasons paper, and further information on the specification of input methodologies applicable to default price-quality paths, are available on the Commission’s website at
www.comcom.govt.nz/additional-input-methodologies-for-electricity-and-gas-dpps/

Dated at Wellington this 11th day of October 2012.

COMMERCE COMMISSION.

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Electricity Authority

Electricity Industry Act 2010

Notice of Adoption of Replacement Procurement Plan

1. Pursuant to clause 5(c) of Schedule 1 of the Electricity Industry Act 2010 (“Act”), I give notice that the Electricity Authority (“Authority”) adopts a replacement procurement plan for the purposes of clause 8.41 of the Electricity Industry Participation Code 2010 (“Code”).

2. The adoption of the procurement plan has effect from 1 December 2012.

3. The procurement plan is a document incorporated by reference into the Code as having legal effect in accordance with section 32 of the Act.

4. A copy of the procurement plan and the Code is available on the Authority’s website at www.ea.govt.nz/act-code-regs/code-regs/the-code/

5. A copy of the procurement plan and the Code may also be inspected free of charge or purchased from the Electricity Authority, Level 7, ASB Bank Tower, 2 Hunter Street, Wellington.

Dated at Wellington this 8th day of October 2012.

DR THOMAS BRENT LAYTON, Chairperson, Electricity Authority.

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Financial Markets Authority

Securities Act 1978

Notice Under Section 70C of the Securities Act 1978

Pursuant to section 70B of the Securities Act 1978, the Financial Markets Authority on 5 October 2012 granted the exemptions contained in the Securities Act (Tairua Marina) Exemption Notice 2012.

Copies are available on the Financial Markets Authority’s website
www.fma.govt.nz

Copies are also available for purchase on request to the Financial Markets Authority, Level 2, 1 Grey Street, Wellington, or Level 5, Ernst & Young Building, 52–70 Galway Street, Britomart, Auckland, or by post to PO Box 1179, Wellington 6140.

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Notice Under Section 48A of the Securities Markets Act 1988

Pursuant to section 48(1)(d) of the Securities Markets Act 1988, the Financial Markets Authority on 5 October 2012 granted the exemptions contained in the Futures Contracts (OM Financial Limited) Exemption Notice 2012.

Copies are available on the Financial Markets Authority’s website
www.fma.govt.nz

Copies are also available for purchase on request to the Financial Markets Authority, Level 2, 1 Grey Street, Wellington, or Level 5, Ernst & Young Building, 52–70 Galway Street, Britomart, Auckland, or by post to PO Box 1179, Wellington 6140.

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