Commerce Commission begins consultation on information disclosure regime
29 July 2009
The Commerce Commission has today released a discussion document which forms the first step in a consultation process to develop information disclosure requirements for the suppliers of regulated electricity lines, gas pipelines and specified airport services.
The Information Disclosure Discussion Paper sets out the Commission's preliminary views on its approach to information disclosure regulation under Part 4 of the Commerce Act 1986.
The purpose of information disclosure is to ensure that interested persons can readily access sufficient information to assess whether the purpose of Part 4 is being met. The purpose of Part 4 is to promote the long-term benefit of consumers in markets where there is little or no competition, or no likelihood of a substantial increase in competition, by promoting outcomes such that suppliers of regulated goods or services:
- have incentives to innovate and invest;
- have incentives to improve efficiency and provide services at a quality that reflects consumer demands;
- share the benefit of efficiency gains with consumers; and
- are limited in their ability to extract excessive profits.
"The Commission encourages interested parties to make submissions on the discussion paper as this is an important first step towards determining how the information disclosure regime will work," said Commerce Commission Acting Director of Network Performance Brent Alderton.
"In particular, the Commission is aware that all regulatory instruments impose compliance costs upon regulated suppliers and we are mindful of the need to determine information disclosure requirements that achieve the desired outcome in a cost-effective manner. For this reason the discussion paper identifies where information should be readily available and where information may be required to be developed and this will lead to discussion on the cost-effectiveness of the various disclosures proposed," said Mr Alderton.
Interested parties have until 5pm on Friday 4 September 2009 to make submissions on the Discussion Paper.
Other papers already released that are relevant to the regulation under Part 4 of the Commerce Act:
- Input Methodologies Discussion Paper;
- Reset of Default Price-Quality Paths for Electricity Distribution Businesses Discussion Paper;
- Transpower Process and Recommendation Discussion Paper; and
- Revised Draft Cost of Capital Guidelines.