Final consultation on input methodologies for airport services
1 October 2010
The Commerce Commission today released its revised draft input methodologies determination for specified airport services for technical consultation. This is expected to be the final consultation step before the input methodologies for airports are finalised.
The draft decisions for airports' information disclosure requirements and the input methodologies that underpin them have been consulted on previously. Key changes to the draft input methodologies include the valuation of land conversion costs, and asset betas, equity betas and the allowance for debt issuance costs, which are parameters in the cost of capital calculation.
The Commission is seeking submissions on whether the revised draft determination gives effect to the updated draft decisions. Submissions are due by 5pm on Friday 15 October 2010. The Commission will release its revised draft information disclosure determination for technical consultation in the week of 11 October 2010. Once the Commission has considered submissions on the revised draft determinations, it will finalise the input methodologies and information disclosure requirements by 31 December 2010.
The revised draft input methodologies determination for specified airport services, along with a paper explaining the reasons for changes to the draft determination, can be accessed on the Commission's website at www.comcom.govt.nz/input-methodologies
The purpose of input methodologies is to promote certainty for suppliers and consumers in relation to the rules, requirements and processes applying to the regulation, or proposed regulation, of goods or services under Part 4 of the Commerce Act 1986.
Airports are subject to information disclosure under Part 4. The airports regulatory regime will apply to specified airport services supplied by the companies operating Auckland, Christchurch and Wellington International Airports.
Draft decisions for airports' information disclosure requirements and the input methodologies that underpin them were released for consultation on 31 May 2010. Since then, the Commission has:
- considered all submissions and cross submissions received on its input methodologies draft decisions for specified airport services; and
- revised its draft input methodologies determination for specified airport services.