The Commerce Commission (“Commission”) gives notice that it has amended the input methodology (IM) applicable to Transpower in accordance with Part 4 of the Commerce Act 1986 (“Act”).
The amended IM is:
- Transpower Capital Expenditure Input Methodology Determination  NZCC 2
The amendments are set out in:
- Transpower Capital Expenditure Input Methodology Amendments Determination  NZCC 8
Notice of amendments determination
- On 25 May 2018, the Commission made a determination to amend the Transpower Input Methodology Determination  NZCC (capex IM).
- The amendments improve the existing methodologies following our review of the capex IM commencing on 28 April 2017 under section 52Y of the Act.
- This notice summarises the amendments determination and explains how it is publicly available in accordance with section 52W of the Act.
Summary of the amendments determination
- The amendments make material changes to the:
- incentive regime that applies to Transpower;
- approval processes for base capex;
- approval processes for major capex, including the introduction of the option of staged major capex projects; and
- information requirements.
- Non-material amendments have also been made across the determination in order to improve clarity and promote internal drafting consistency.
- The reasons for the above 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
- reduce compliance costs, other regulatory costs or complexity (without detrimentally affecting the promotion of the purpose of Part 4 of the Act).
- A copy of the determination and the reasons paper is available on the Commission’s website, http://www.comcom.govt.nz/regulated-industries/input-methodologies-2/transpower-input-methodologies/, 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).
Date of Notice: 28 May 2018.