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

The amended IMs are:

• Electricity Distribution Services Input Methodologies Determination 2012 [2012] NZCC 26
• Gas Distribution Services Input Methodologies Determination 2012 [2012] NZCC 27
• Gas Transmission Services Input Methodologies Determination 2012 [2012] NZCC 28

The amendments are set out in:

• Electricity Distribution Services Input Methodologies Amendments Determination 2017 [2017] NZCC 30
• Gas Distribution Services Input Methodologies Amendments Determination 2017 [2017] NZCC 31
• Gas Transmission Services Input Methodologies Amendments Determination 2017 [2017] NZCC 32

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 valuation of assets in relation to acquisitions from related parties.

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 reduced compliance costs, other regulatory costs or complexity (without detrimentally affecting the promotion of the purpose of Part 4 of the Act).

Copies of the amendments determinations and the reasons paper are available on the Commission’s website at www.comcom.govt.nz/regulated-industries/input-methodologies-2/input-methodologies-review/related-party-transactions-provisions 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 this 21st day of December 2017.

COMMERCE COMMISSION.