The New Zealand Competition Authority invites views on the revision of the cost of capital input methodologies that apply to electricity lines services, gas pipeline services and specified airport services

Press releases published on New Zealand Commerce Commission

Commission seeks views on cost of capital input methodologies* The Commerce Commission is now inviting views on whether it should consider reviewing or amending the input methodologies for the cost of capital that apply to electricity lines services, gas pipeline services and specified airport services regulated under Part 4 of the Commerce Act 1986. In a recent judgment the High Court questioned the Commission’s use of the 75th percentile estimate of the weighted average cost of capital (WACC) to set price-quality paths. The Court considered doing so might be at odds with the Part 4 objective to limit the ability of regulated suppliers to earn excessive profits. “As signalled by the Commission on 7 February, we are now seeking views on the cost of capital input methodologies,” said

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New Zealand Competition Authority, The New Zealand Competition Authority invites views on the revision of the cost of capital input methodologies that apply to electricity lines services, gas pipeline services and specified airport services, 11 December 2014, e-Competitions December 2014, Art. N° 64189

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