✨ Amendment to Input Methodologies
30 NOVEMBER 2012 NEW ZEALAND GAZETTE, No. 144 4221
except to represent a relatively small proportion of overall income, we consider that there should not be any material difference between these different timing assumptions. However, a mid-year assumption is consistent with general revenue and operating expenditure, and in the interests of consistency these should be aligned.
Term credit spread differential allowance—to be recognised as occurring evenly during the year. The costs of issuing debt generally occur in relation to the issue dates of the particular debt instruments, however an assumption that those costs occur, on average, evenly throughout the year is consistent with an expectation that an efficient firm would arrange its debt financing obligations to match its overall net cash flows. A mid-year timing assumption is consistent with this and would have the additional benefit of reflecting the calculation of the notional interest deduction for tax purposes on a mid-year basis.
The timing of depreciation and revaluations has not been reconsidered, since these are non-cash items in the context of the relevant CPP building blocks formulae.
Copies of the amendment determination and reasons paper are available on the Commission’s website at http://www.comcom.govt.nz/amendments-and-clarifications/
29 November 2012.
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NZ Gazette 2012, No 144
✨ LLM interpretation of page content
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Notification of Amendment to Input Methodologies for Customised Price-Quality Paths
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🏭 Trade, Customs & Industry29 November 2012
Commerce Commission, Input Methodologies, Customised Price-Quality Paths, Electricity Distribution, Gas Distribution, Gas Transmission, Commerce Act 1986, Cash Flow Modelling
- Commerce Commission