Commerce Act deadline extended

The Commerce Commission has been given a six-month extension to finalise input methodologies under Part 4 of the Commerce Act, Commerce Minister Simon Power announced today.


Input methodologies set out the rules, processes, and requirements relating to regulation, such as how to evaluate or calculate the cost of capital, value assets, and allocate common costs.


Part 4 of the Commerce Act regulates the electricity and gas distribution sectors and some airports.


Under Part 4, the Commerce Commission must establish input methodologies for these sectors. The Act allows for a one-off extension of up to six months.


"Input methodologies are complex, and it's important to ensure there is sufficient time to engage with interested parties around any issues that may arise," Mr Power said.


"The extension will ensure the commission and industry have enough time to engage, and for sector groups to respond to the commission's drafts."


As a result of the extension, the commission's statutory deadline for determining input methodologies will be extended to 31 December next year.


The commission's statutory deadline for determining airport information disclosure regulations will be extended from 1 July next year to 1 January 2011.