Press Release – Commerce Commission
Commission issues new information disclosure requirements for Transpower
Issued 28 February 2014
Release No. 80
The Commerce Commission has today issued information disclosure requirements for Transpower, the owner and operator of the national electricity transmission grid.
Under the new requirements, Transpower will publicly disclose information about its investment and innovation, financial performance, pricing and network management.
“These new requirements mark an important milestone for the Commission in setting the regulatory regime under Part 4 of the Commerce Act (1986). They complete the suite of regulatory instruments put in place by changes to the Commerce Act in 2008,” said Sue Begg, Commerce Commission Deputy Chair.
“The new requirements mean that people will have access to a comprehensive set of information about how Transpower is performing,” said Ms Begg.
Information will be available for people to better understand how Transpower is managing its assets, what level of service quality is being delivered to consumers, what improvements Transpower has made or is planning to make, and whether Transpower is making an appropriate return on its investments.
“We have been mindful of the additional costs to Transpower of providing information, as these can end up in prices to consumers. We have worked with Transpower, and other parties, to ensure sufficient information is provided at reasonable cost,” said Ms Begg. “We have considered what information Transpower is already required to publish and, where possible, we have provided for Transpower to use existing data sources and reports.”
Transpower’s first set of disclosures under the requirements will be in 2015.
The information disclosure requirements, and supporting reasons paper, are available on the Commission’s website at http://www.comcom.govt.nz/regulated-industries/electricity/electricity-transmission/transpower-information-disclosure/ .
What is the purpose of information disclosure regulation?
The purpose of information disclosure under Part 4 of the Commerce Act is to ensure that interested persons, including the Commission, have sufficient information available to assess if the purpose of Part 4 is being met. The purpose of Part 4 is to promote the long-term benefit of consumers in markets where there is little or no competition.
What services are subject to information disclosure regulation?
The new requirements for Transpower apply to its electricity transmission services and system operator services.
In addition, we have set information disclosure requirements for 29 electricity distribution businesses supplying electricity lines services across New Zealand, suppliers of gas pipeline services, and the international airports at Auckland, Wellington, and Christchurch.