Transpower is subject to the regulatory provisions under subpart 9 of Part 4 of the Commerce Act 1986 (the Act). Subpart 9 provides that electricity lines services, including Transpower, are subject to price-quality regulation and information disclosure. Transpower is subject to individual price-quality regulation.
The Commission made its input methodologies determination for electricity lines services supplied by Transpower (electricity transmission services) on 22 December 2010 and published the determination in the New Zealand Gazette on 20 January 2011. The determination includes input methodologies for asset valuation, cost allocation, regulatory tax treatment, the cost of capital and regulatory rules and processes.
In addition to these input methodologies, the Commission has also determined an input methodology for Transpower's capital expenditure proposals (Capex IM) in January 2012.
On 8 March 2011 the Commission published a memorandum on its process for considering requests for amendments or clarifications of the Part 4 determinations. Requests for amendments or clarifications and the Commission's response are summarised in Request for Clarification/Amendments to Part 4 Determinations Commission Responses 2011.
In December 2011, Clifford J issued a judgement in the High Court that held that aspects of the December 2010 input methodologies relating to Transpower's leverage were unlawful. At the court's direction the Commission consulted on this and re-issued the input methodologies in a Determination on 29 June 2012. The input methodologies are the same as the December 2011 consolidated determination.
On this page you will find the current Transpower input methodologies determinations and the associated reasons papers located under Current documents that apply. Determinations of the Cost of Capital in accordance with the Input Methodologies Determination are published on the Cost of Capital page. Documents relating to consultation undertaken by the Commission for Transpower's cost of capital are located under Supporting documents. Documents relating to the consultation for the Capex IM are located in the Online archive.