New Zealand Institute for the study of competition and regulation inc.

Abstract

A new regulatory regime applying to Electricity Lines Businesses (ELBs) will come into force on 1 April 2009.  These reforms are set out in the Commerce Amendment Bill 2008, which passed its Third Reading on 5 September 2008.  Although many commentators have welcomed the Bill, it may well prove to be disappointing.  In particular, compromise over a dynamic efficiency objective, lack of clarity about an introduced concept "input methodologies" and limited appeal rights portend uncertainty and issues to be resolved.