Notice Type
Authorities/Other Agencies of State
Notice Title

Notice of Determination of Default Price-Quality Regulation Applicable to Gas Pipeline Businesses

The Commerce Commission (the "Commission") gives the following notice under Part 4 of the Commerce Act 1986 ("the Act").
Notice of determination
1. On 28 February 2013, the Commission issued the Gas Distribution Services Default Price-Quality Path Determination 2013, [2013] NZCC 4 ("the GDB DPP Determination"), and the Gas Transmission Services Default Price-Quality Path Determination 2013, [2013] NZCC 5 ("the GTB DPP Determination"), under section 52P of the Act.
2. The determinations set out the default price-quality
path applicable to regulated suppliers of gas pipeline services ("gas pipeline businesses"). The GDB DPP Determination applies to the gas distribution services provided by Gasnet Limited ("Gasnet"), Powerco Limited ("Powerco"), and Vector Limited ("Vector"). The GTB DPP Determination applies to the gas transmission services provided by Maui Development Limited ("MDL") and Vector.
3. The determinations are made in accordance with the Commission’s input methodologies applicable to gas pipeline businesses, as specified in the Gas Distribution Services Input Methodologies Determination 2012 [2012] NZCC 27 and the Gas Transmission Services Input Methodologies Determination 2012 [2012] NZCC 28.
4. This notice summarises the determinations in accordance with section 52P(7)(b) of the Act.
Summary of the determinations
5. The determination applies for the regulatory period starting 1 July 2013 and expiring on 30 September 2017.
6. The starting prices (expressed in the form of maximum allowable revenue) for each of the regulated gas pipeline businesses are set out below.
Gas distribution services:
- Gasnet $4.578m
- Powerco $48.628m
- Vector $69.693m
Gas transmission services:
- MDL $39.805m
- Vector $88.983m
7. The annual rate of change relative to CPI is 0% for both gas distribution services and gas transmission services.
8. During each assessment period within the regulatory control period, all gas pipeline businesses must respond to all emergencies within 180 minutes. Gas distribution businesses must respond to at least 80% of emergencies within 60 minutes.
9. Regulated gas pipeline businesses must submit a compliance statement within 50 working days following the end of each assessment period during the regulatory control period. For gas pipeline businesses other than MDL, the first assessment period is for a period of
15 months, from 1 July 2013 to 30 September 2014, and annually for subsequent assessment periods.
10. For MDL, each assessment period is for 12 months, the first period covering the year 1 July 2013 to 30 June 2014, except for the last assessment period, which is for the period 1 July 2017 to 30 September 2017.
11. Gas pipeline businesses may submit proposals for a customised price-quality path determination at any time before 1 October 2016.
Further information
12. Copies of the determinations and reasons paper are available for inspection free of charge at the Commission (during ordinary office hours), 44 The Terrace, Wellington; for purchase at a reasonable price at the Commission; or on the Commission’s website at
Dated at Wellington this 28th day of February 2013.