Commerce Commission Input Methodology processes upheld by High Court

The Commerce Commission today welcomed a High Court judgment on a number of judicial review applications around the Commission’s 2010 Input Methodology determinations. Justice Clifford found for the Commission on all but one of the challenges brought by Vector, Wellington international Airport, Christchurch International Airport and Transpower.

The judicial review applications covered a number of aspects of the Commission’s consultation processes in developing the Input Methodologys across a range of areas including its overall process, and some specific points in relation to the cost of capital Input Methodology.

“We are pleased that the Court has found our overall consultation and determination process, over two years, was robust and appropriate. As Justice Clifford commented, the Commission did what it was required to do and what it had said it would do,” said Commerce Commission Chair Dr Mark Berry.

On one specific point, relating to part of Transpower’s cost of capital Input Methodology, the Court found that the Commission needed to consult further.

“It has taken nearly a year to get to the point where our consultation process has been found to be sound. While we are still considering the judgment relating to Transpower’s cost of capital, we will endeavour to resolve this quickly, as it is important to move on to the merits appeals of the Input Methodologies as soon as possible.”

“It is important for New Zealand’s regulated industries and the consumers of their services that we can move to the point where there is certainty about the rules that govern prices, quality and information disclosure. This judgment is an important step on the way,” Dr Berry said.