Commission welcomes Supreme Court ruling on input methodologies

The Commerce Commission welcomes a Supreme Court decision today confirming that the Commission is not required to determine a starting price input methodology for electricity distribution and gas pipeline services. This confirms the decision by the Court of Appeal in June 2012.

"Today’s ruling finally allows the Commission to complete aspects of the regulatory regime which will promote the certainty that the legislation anticipated,” said Commerce Commission Chair Dr Mark Berry.

As a consequence of the Supreme Court’s decision the Commission can now complete the reset of the default price-quality paths for both electricity distribution and gas pipeline businesses. The final report on the reset of electricity default price-quality paths is scheduled for 30 November, 2012, and the Commission’s final decision on the default price-quality path for gas pipeline businesses is scheduled for release in February 2013.

"The judicial reviews the Commission has faced in relation to input methodologies have significantly delayed the implementation of the Part 4 regime. This has had the effect of allowing some businesses to continue to charge their customers too much. And some businesses which we believe should be able to charge more in order to invest in their networks have not been able to increase prices," Dr Berry said.

“We look forward to being able to now implement the regime as Parliament intended.”

You can see a copy of the Supreme Court judgment at http://www.comcom.govt.nz/input-methodologies-2/