The Commerce Commission (“Commission”) gives public notice under section 180 of the Telecommunications Act 2001 (“Act”) that it is has amended under section 181 of the Act the Fibre Input Methodologies Determination 2020 [2020] NZCC 21, as previously amended (“fibre IMs”).

Summary of the Amendments

The amendments have been published in the Fibre Input Methodologies Amendment Determination 2023 [2023] NZCC 13 (“amendment determination”).

The amendments change the fibre IMs in the following respects:

1. enabling the benefits of Crown financing received prior to 1 December 2011 but enjoyed during the financial loss period to be included in the calculation of the financial loss asset;
2. amending clause B1.1.2(9)(c) of Schedule B of the fibre IMs so that the provision references the calculation of the UFB opening asset value for all regulated fibre service providers, rather than just Chorus;
3. enabling the weighted average cost of capital (WACC) determinations made for Chorus ID to be made within two months of the start of Chorus’ disclosure year, rather than one month; and
4. introducing a wash-up for Chorus for:
1. the revenue effect of the difference between Chorus’ forecast and actual opening RAB values for the second and subsequent regulatory periods (the “opening RAB wash-up”);
2. the opening tax asset value; and
3. the value of tax losses.

Further Information

Copies of the amendment determination, and the supporting reasons paper, are available on the Commission’s website at: https://comcom.govt.nz/regulated-industries/fibre/projects/current-amendments-and-clarifications.

Dated at Wellington this 28th day of June 2023.

COMMERCE COMMISSION.