Under Part 4 of the Commerce Act 1986 (the Act) non-exempt electricity distribution businesses (EDBs) and gas pipeline services (GPBs) are subject to default/customised price-quality regulation. The purpose of default-customised price-quality regulation is to provide a relatively low-cost way of setting price-quality paths for suppliers of regulated services, while allowing suppliers the opportunity to propose alternative price-quality paths that better meet their particular circumstances.
- More information about the default price-quality path as it applies to EDBs
- More information about the default price-quality paths proposed for GPBs
This fact sheet provides an overview of customised price-quality regulation under the Commerce Act. With a focus on electricity distribution and gas distribution and transmission businesses, it explains why a business might apply for a customised price-quality path and the process that is involved.
How to submit a customised price-quality path proposal.
On 20 February 2013 we received a proposal from Orion for a customised price-quality path (CPP) that takes into account Orion’s extraordinary circumstances following the Canterbury earthquakes in 2010 and 2011.
The Commission is seeking guidance from the High Court on the timeframe for determining a customised price-quality path (CPP) under sections 53T(2) and 53ZA(1) of the Commerce Act 1986.