Review of Regulatory Control Provisions

Posted June 20th, 2007 by Dr James Pratt

On 4 April 2007 Commerce Minister Lianne Dalziel and Energy Minister David Parker released a discussion document reviewing the price control provisions in Parts 4, 4A and 5 of the Commerce Act.

Part 4 allows goods or services to be placed under price and quality control where competition is limited and control would be in the long term interests of consumers.

Part 4A applies specifically to electricity lines businesses, and allows the Commerce Commission to place them under regulatory control if they breach thresholds set by the Commission. Part 5 requires the Commerce Commission to authorise the prices of controlled goods and services.

The discussion document is seeking feedback from all interested parties on a range of potential amendments to the regulatory control provisions of the Act.

Submissions are due on 6 July 2007.

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