The Commerce Commission (“Commission”) gives notice that it has amended the input methodologies (IMs) applicable to electricity distribution businesses (EDB) under Part 4 of the Commerce Act 1986 (“Act”).
The amended IMs are:
- Electricity Distribution Services Input Methodologies Determination 2012  NZCC 26 (EDB IMs).
The amendments are set out in:
- Electricity Distribution Services Input Methodologies Amendments Determination 2020  NZCC 2.
The amendments to the EDB IMs relate to changes to enhance certainty about the rules and correct for technical errors ahead of the commencement of the default price-quality path for EDBs from 1 April 2020 (EDB DPP3).
Specifically, these IM amendments are in respect of the specification and definition of prices and amend the definition of “discount”. The previous IMs meant that EDBs could not include any discounts not offered before the determination of “forecast net allowable revenue” in their calculations of “forecast revenue from prices” when demonstrating compliance with the price path. We have amended the IMs to resolve this error.
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 companion paper is available on the Commission’s website, https://comcom.govt.nz/regulated-industries/input-methodologies/projects/amendments-necessary-to-implement-the-2020-electricity-distribution-default-price-quality-path, 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: 30 March 2020.