The Commerce Commission (“Commission”) gives notice that it has amended the input methodology (IM) applicable to Transpower in accordance with Part 4 of the Commerce Act 1986 (“Act”).

The amended IM is:

• Transpower Capital Expenditure Input Methodology Determination [2012] NZCC 2

The amendments are set out in:

• Transpower Capital Expenditure Input Methodology Amendments Determination [2018] NZCC 8

Notice of amendments determination

1. On 25 May 2018, the Commission made a determination to amend the Transpower Input Methodology Determination [2012] NZCC (capex IM).
2. The amendments improve the existing methodologies following our review of the capex IM commencing on 28 April 2017 under section 52Y of the Act.
3. This notice summarises the amendments determination and explains how it is publicly available in accordance with section 52W of the Act.

Summary of the amendments determination

4. The amendments make material changes to the:
   • incentive regime that applies to Transpower;
   • approval processes for base capex;
   • approval processes for major capex, including the introduction of the option of staged major capex projects; and
   • information requirements.
5. Non-material amendments have also been made across the determination in order to improve clarity and promote internal drafting consistency.
6. The reasons for the above amendments are to:
• promote the purpose of Part 4 of the Act (section 52A) more effectively;
• promote the purpose of IMs (section 52R) more effectively (without detrimentally affecting the promotion of the purpose of Part 4 of the Act); and
• reduce compliance costs, other regulatory costs or complexity (without detrimentally affecting the promotion of the purpose of Part 4 of the Act).

Further information

7. A copy of the determination and the reasons paper is available on the Commission’s website, http://www.comcom.govt.nz/regulated-industries/input-methodologies-2/transpower-input-methodologies/, and for inspection free of charge, or for purchase at a reasonable price, at the Commission’s Office at 44 The Terrace, Wellington (during ordinary office hours).

Date of Notice: 28 May 2018.

COMMERCE COMMISSION.