Pursuant to Part 4 of the Commerce Act 1986 ("Act"), the Commerce Commission ("Commission") gives the following notice.
N o t i c e
1. Title-This notice is the Gas Transmission Information Disclosure Determination Notice 2012.
2. Gas transmission information disclosure determination
2.1 On 1 October 2012, the Commission made the Gas Transmission Information Disclosure Determination 2012 ("determination").
2.2 The determination sets information disclosure requirements for gas transmission businesses as suppliers of regulated goods and services under Part 4 of the Act.
2.3 In accordance with section 52P(7)(b) of the Act, this notice is published as a summary of the determination.
3. Summary of the determination
3.1 The determination sets out the information disclosure requirements that apply to gas transmission businesses.
3.2 The determination came into force on 1 October 2012.
3.3 The information disclosure requirements consist of requirements to disclose financial and non-financial information in relation to the supply of regulated gas transmission services, along with an assurance report and directors’ certifications
in support of the disclosures.
3.4 In relation to historical financial information, gas transmission businesses must disclose:
(a) the return they have received on their investments, when compared against the weighted average cost of capital, including details of how the return on investment is determined;
(b) regulatory profit;
(c) value of the regulatory asset base;
(d) supporting information relating to regulatory tax, treatment of related party transactions, and the term credit spread differential;
(e) how common costs and assets have been allocated and where that allocation has changed;
(f) capital expenditure and operational expenditure in accordance with standardised categories;
(g) annual reconciliations of actual expenditure against forecasts; and
(h) transitional financial information (in the first annual disclosure of historic information).
3.5 In relation to information about the network, gas transmission businesses must disclose:
(a) an asset register;
(b) the age profile of their assets;
(c) information on demand; and
(d) information relating to pipelines.
3.6 In relation to forecast information, gas transmission businesses must disclose:
(a) Asset Management Plans (or AMP updates), including a transmission system capacity assessment, and Asset Management Maturity Reports;
(b) forecast capital expenditure and operational expenditure in accordance with standardised categories; and
(c) supporting information including asset condition and forecast demand.
3.7 In relation to pricing, gas transmission businesses must disclose information about their pricing, including:
(a) pricing methodologies and (where applicable) pricing strategies;
(b) treatment of capital contributions;
(c) standard prices;
(d) prescribed terms and conditions of contracts; and
(e) historic quantities and revenues billed.
3.8 In relation to quality, gas transmission businesses must disclose information relating to:
(a) reliability and interruptions; and
(b) pipeline integrity and customer service.
3.9 In relation to pipeline capacity and peak flows, gas transmission businesses must disclose additional information relating to:
(a) peak flows for the 12 months ending in September each year; and
(b) methodologies for allocating capacity.
3.10 Disclosures must be publicly disclosed and must be supported by directors’ certifications and assurance reports.
4. How the determination is publicly available
Copies of the determination, and a reasons paper providing detailed background to and analysis of the determination, are available for inspection free of charge at the Commission (during ordinary office hours), on the Commission’s website
www.comcom.govt.nz
or for purchase at a reasonable price at the Commission, 44 The Terrace, Wellington.
Dated at Wellington this 9th day of October 2012.
COMMERCE COMMISSION.
Explanatory Note
The Commerce Amendment Act 2008 introduced changes to the Commerce Act 1986 ("Act") including a requirement for the Commission to set information disclosure requirements for suppliers of gas transmission services.
The information disclosure requirements must, under section 55E(1) of the Act, be made as soon as practicable after 14 October 2008. The information disclosure requirements took effect on 1 October 2012.
Suppliers of gas transmission services must apply the input methodologies in Gas Transmission Services Input Methodologies Determination 2010 when complying with the information disclosure determination.