Notice Type
Authorities/Other Agencies of State
Notice Title

Notification of Amendments to Input Methodologies Applicable to Electricity Distribution Businesses – Incremental Rolling Incentive Scheme (IRIS)

Pursuant to section 52W of the Commerce Act 1986 (“the Act”), the Commerce Commission (“Commission”) gives the following notice:

The Commission has amended the input methodologies applicable to electricity lines services under Part 4 of the Act.

The input methodologies amended are set out in the Electricity Distribution Services Input Methodologies Determination 2012 [2012] NZCC 26.

The amended input methodologies are set out in the Electricity Distribution Services (Incremental Rolling Incentive Scheme) Input Methodology Amendments Determination 2015 [2015] NZCC 32 (“amendment”).

The amendment comes into effect on the date of this notice.

The IRIS provides a mechanism by which suppliers that are subject to price-quality regulation can retain the benefits of efficiency gains beyond the end of a regulatory period.

The amendment describes how the Incremental Rolling Incentive Scheme applies to electricity distribution businesses transitioning to and from customised price-quality paths, and completes the IRIS input methodology amendment process commenced with the Commission’s notice of intention in April 2013.

We have amended these input methodologies to improve the incentives for electricity distribution businesses to control expenditure and to improve efficiency, and share improvements in efficiency with consumers through prices that are lower than they otherwise would have been. These amendments complement the amendments made on 27 November 2014, which set out how the IRIS would apply to non-exempt electricity distribution businesses subject to default price-quality paths. Those amendments were set out in the Incremental Rolling Incentives Scheme Input Methodologies Amendment Determination 2014 [2014] NZCC 32.

Copies of the amendment and reasons paper are available on the Commission’s website

and are available for inspection free of charge at the Commission (during ordinary office hours), or for purchase at a reasonable price at the Commission, 44 The Terrace, Wellington.

Dated at Wellington this 25th day of November 2015.