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Another step for electricity distribution regulation

Fuseworks Media
Fuseworks Media

Wellington, June 18 NZPA - The Commerce Commission has taken another step in meeting its responsibilities for regulating electricity distribution businesses under amendments to legislation made in 2008.

The commission today released a paper setting out its draft decisions and reasons on the input methodologies to be applied to the businesses.

The purpose of input methodologies is to promote certainty for suppliers and consumers under Part 4 of the Commerce Act. Part 4 aims to promote the long term benefit of consumers in markets with little or no competition, or no likelihood of a substantial increase in competition.

The issues covered by today's paper include such areas as cost allocation, asset values, depreciation, tax obligations, and cost of capital estimates.

Commission chairman Mark Berry said the input methodologies work would, in the long term, provide greater certainty for regulated businesses.

"In that context, today's release of these draft decisions and reasons is another important milestone in the establishment of the new regime under Part 4."

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