New Zealand Acts

COMMERCE ACT 1986 - SECT 52T

52T Matters covered by input methodologies

1 The input methodologies relating to particular goods or services must include, to the extent applicable to the type of regulation under consideration,—

a) methodologies for evaluating or determining the following matters in respect of the supply of the goods or services:

i) cost of capital:

ii) valuation of assets, including depreciation, and treatment of revaluations:

iii) allocation of common costs, including between activities, businesses, consumer classes, and geographic areas:

iv) treatment of taxation; and

b) pricing methodologies, except where another industry regulator (such as the Electricity Authority) has the power to set pricing methodologies in relation to particular goods or services; and

c) regulatory processes and rules, such as—

i) the specification and definition of prices, including identifying any costs that can be passed through to prices (which may not include the legal costs of any appeals against input methodology determinations under this Part or of any appeals under section 91 or section 97 ); and

ii) identifying circumstances in which price-quality paths may be reconsidered within a regulatory period; and

d) matters relating to proposals by a regulated supplier for a customised price-quality path, including—

i) requirements that must be met by the regulated supplier, including the scope and specificity of information required, the extent of independent verification and audit, and the extent of consultation and agreement with consumers; and

ii) the criteria that the Commission will use to evaluate any proposal.

2 Every input methodology must, as far as is reasonably practicable,—

a) set out the matters listed in subsection (1) in sufficient detail so that each affected supplier is reasonably able to estimate the material effects of the methodology on the supplier; and

b) set out how the Commission intends to apply the input methodology to particular types of goods or services; and

c) be consistent with the other input methodologies that relate to the same type of goods or services.

3 Any methodologies referred to in subsection (1)(a)(iii) must not unduly deter investment by a supplier of regulated goods or services in the provision of other goods or services.

History: Section 52T: inserted, on 14 October 2008, by section 4 of the Commerce Amendment Act 2008 (2008 No 70).   Section 52T(1)(b): amended, on 1 November 2010, by section 147 of the Electricity Industry Act 2010 (2010 No 116).