Transpower, the sole supplier of electricity (transmission) lines services, is subject to an administrative settlement with the Commission until 30 June 2011.
The terms of the settlement require Transpower’s existing price path threshold be replaced with three alternate thresholds until 30 June 2011, that the quality threshold be retained, and that the price increase announced for April 2006 and subsequent years be reduced.
The Commerce Amendment Act 2008 preserved the settlement, with the relevant provisions set out under subpart 9 of Part 4 of the Commerce Act 1986.
Before the administrative settlement expires, the Commission must make a recommendation to the Minister of Commerce that an Order in Council be made declaring which type of price-quality regulation Transpower should be subject to, i.e. either default/customised price-quality regulation, or individual price-quality regulation.
The process for recommending the form of regulation must follow the process requirements (except those provisions specifically relating to inquiries) in subpart 2 of Part 4 of the Act.
Further details of the Transpower settlement and inquiry process under Part 4A can be accessed here.