The Commerce Commission (“Commission”) gives notice that it has amended the input methodologies (IMs) applicable to electricity lines services, gas pipeline services, and specified airport services, under Part 4 of the Commerce Act 1986 (“Act”).

The amended IMs are:

• Electricity Distribution Services Input Methodologies Determination 2012 [2012] NZCC 26
• Transpower Input Methodologies Determination [2012] NZCC 17
• Gas Distribution Services Input Methodologies Determination 2012 [2012] NZCC 27
• Gas Transmission Services Input Methodologies Determination 2012 [2012] NZCC 28
• Commerce Act (Specified Airport Services Input Methodologies) Determination 2010 (Decision 709, 22 December 2010).

The amendments are set out in:

• Electricity Distribution Services Input Methodologies Amendments Determination 2016 [2016] NZCC 24
• Gas Distribution Services Input Methodologies Amendments Determination 2016 [2016] NZCC 25
• Gas Transmission Services Input Methodologies Amendments Determination 2016 [2016] NZCC 26
• Transpower Input Methodologies Amendments Determination 2016 [2016] NZCC 27
• Airport Services Input Methodologies Amendments Determination 2016 [2016] NZCC 28.

The amendments have been made under section 52Y of the Act as a result of the review of IMs that commenced on 10 June 2015. The amendments improve the existing methodologies for:

• cost of capital;
• valuation of assets;
• allocation of common costs;
• treatment of taxation;
• regulatory processes and rules; and
• matters relating to proposals by a regulated supplier for a customised price-quality path.

The reasons for the amendments are to:

• promote the purpose of Part 4 of the Act (section 52A) more effectively;
• promote the purpose of IMs (section 52R) more effectively (without detrimentally affecting the promotion of the purpose of Part 4 of the Act); and
• significantly reduce compliance costs, other regulatory costs or complexity (without detrimentally affecting the promotion of the purpose of Part 4 of the Act).

Copies of the amendment determinations, and reasons papers, are available on the Commission’s website at

www.comcom.govt.nz/input-methodologies-review/

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).

Dated at Wellington this 22nd day of December 2016.

COMMERCE COMMISSION.