The Commission set the forecast MARs for the 2011/12 pricing year period in December 2010. The forecast MAR was published in the Commerce Act (Transpower Individual Price-Quality Path) Determination 2010 (the IPP Determination).
Transpower was required to provide the Commission with draft calculations of the forecast MAR that was based on a hybrid approach between the revenue setting under the Administrative settlement and the (then Draft) IPP Determination. The specifications for the calculations are set out in a notice issued to Transpower by the Commission under section 53ZD of the Commerce Act 1986.
Transpower's calculation of the forecast MAR was certified by its CEO and was subject to an independent assurance report.
Although the forecast MAR for this transition year was calculated and set on a hybrid basis, the wash up of the MAR on completion of the disclosure year of 30 June 2012 is required to be carried out in full compliance with the IPP Determination and the applicable input methodologies. Any difference will be picked up in the wash up of the forecast MAR. This will result in an update to the forecast MAR for the 2013/14 pricing year.
