Media Releases

Commission issues update on fast track amendments for IM review

3 July 2015

The Commerce Commission has today decided to fast track the consideration of airport land valuation rules as part of the input methodologies (IM) review announced on 10 June.

Commission Chair Dr Mark Berry said submitters had highlighted the benefit of this specific tranche of work to be completed early to provide greater certainty ahead of the next airport price setting events in mid-2017.

“Our consideration of the airport land valuation methodology will be completed by February 2016 to ensure Auckland and Christchurch airports can prepare updated land valuations, should they wish to do so, well in advance of their next price setting events in 2017,” Dr Berry said.

The Commission is still considering whether to fast track certain parts of the IM review relating to customised price-quality paths for electricity distributors.

“We are still working through the submissions relating to the proposed fast track of customised price-quality paths, particularly those that have highlighted a concern about the difference in the cost of capital between customised and default price-quality paths.

"To help our consideration of these submissions, we are requesting any further comments parties may have on these new topics to be sent to us by 10 July 2015,” Dr Berry said.

Further information on the input methodologies review, including the process paper setting out today’s update on fast track amendments, can be found on the IM review page.

Background

This is the third media release from the Commission on the input methodologies review.

The first release was issued on 10 June 2015, and related to issuing the original notice of intention, and contains all the original background information.

The second release was issued on 16 June 2015, and notified that the Commission had released its first paper for industry and consumer consultation as part of the review of input methodologies. It also highlighted that the Commission will be holding a forum on 29-30 July to hear directly from suppliers and consumers on the main topics for the review.