The Commerce Commission (“Commission”) gives notice that it has amended the Transpower Individual Price-Quality Path Determination 2015  NZCC 35 (RCP2 IPP determination) under Part 4 of the Commerce Act 1986 (“Act”).
The amendments were made under section 52Q of the Act on 5 November 2015, and are set out in the Transpower Individual Price-Quality Path Amendment Determination 2015  NZCC 29 (“amendment determination”).
The RCP2 IPP determination set Transpower’s price-quality path in terms of its forecast maximum allowable revenue (“forecast MAR”) on 28 November 2014 for each pricing year in the regulatory period from 1 April 2015 to 31 March 2020 (“regulatory period”).
Under clause 10 of the RCP2 IPP determination the Commission may reconsider and amend Transpower’s forecast MAR for each pricing year of the regulatory period by the second Wednesday of November of each year.
The amendment gives effect to the Commission’s decision to update Transpower’s forecast MAR for the pricing years from 1 April 2016 to 31 March 2020.
The forecast MAR for each pricing year in the 2015–2020 regulatory period is now:
- for the pricing year from 1 April 2015 to 31 March 2016: $881.6 million (unchanged);
- for the pricing year from 1 April 2016 to 31 March 2017: $911.7 million;
- for the pricing year from 1 April 2017 to 31 March 2018: $952.2 million;
- for the pricing year from 1 April 2018 to 31 March 2019: $949.9 million; and
- for the pricing year from 1 April 2019 to 31 March 2020: $957.3 million.
A copy of the amendment determination is available on the Commission’s website at
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).
A copy of the companion paper to the amendment determination is available on the Commission’s website.
Dated this 19th day of November 2015.