Notice Type
Authorities/Other Agencies of State
Notice Title

COMMERCE ACT

(DECISION NOT TO DECLARE CONTROL - 1 APRIL 2007 TO 31 MARCH 2008: ALPINE ENERGY LIMITED, AURORA ENERGY LIMITED, CENTRALINES LIMITED, COUNTIES POWER LIMITED, EASTLAND NETWORK LIMITED, ELECTRICITY ASHBURTON LIMITED, ELECTRICITY INVERCARGILL LIMITED, NETWORK TASMAN LIMITED, NORTHPOWER LIMITED, POWERCO LIMITED, TOP ENERGY LIMITED, VECTOR NETWORKS LIMITED, NETWORK WAITAKI LIMITED, SCANPOWER LIMITED)
NOTICE 2008
Part 4A of the Commerce Act 1986 ("the Act") came into effect on 8 August 2001
and, among other things, requires the Commerce Commission ("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.
The targeted control regime
Under section 57G(1)(b) of the Act, the Commission must set thresholds for the declaration of control in relation to lines businesses.
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 Commerce Act (Electricity Distribution Thresholds) Notice 2004 published as a Supplement to the New Zealand Gazette, 31 March 2004, No. 37, page 927.
The process for making decisions on declarations of control is set out in section 57H, which provides that the Commission must:
(a) assess large electricity lines businesses against the thresholds set under this subpart; and
(b) identify any large electricity lines business that breaches the thresholds; and
(c) determine whether or not to declare all or any of the goods or services supplied by all or any of the identified large electricity lines businesses to be controlled, taking into account the purpose of this subpart; and
(d) in respect of each identified large electricity lines business,-
(i) make a control declaration; or
(ii) publish the reasons for not making a control declaration in the
New Zealand Gazette, on the Internet, and in any other manner
(if any) that the Commission considers appropriate.
Before making a declaration of control, the Commission is required under section 57I(1) to:
(a) publish its intention to make a declaration and invite interested persons to give their views on the matter; and
(b) give a reasonable opportunity to interested persons to give those views; and
(c) have regard to those views.
Identification of threshold breaches
The Commission has identified the 14 distribution businesses shown in the Table as having breached one or more thresholds at the 2007/08 assessment.
Table: Breaches Identified
Distribution Business 2007/08
Price Quality
Alpine Energy Breach
Aurora Energy Breach
Centralines Breach
Counties Power Breach
Eastland Breach
Electricity Ashburton Breach
Electricity Invercargill Breach
Network Tasman Breach
Network Waitaki Breach
Northpower Breach
Powerco Breach
Scanpower Breach
Top Energy Breach
Vector Breach
Decisions Not to Declare Control
The Commission has determined not to make a declaration of control under Part 4A in respect of electricity distribution services supplied by those electricity distribution businesses contained in Table 1. These distribution businesses will be providing a compliance statement for the 2008/09 year in May 2009. The Commission will monitor the performance of distribution businesses against the 2008/09 price path and quality thresholds, and is able to address any underlying performance issues that cause breaches at that stage.
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.