Commerce Act 1986

Regulated goods or services - Default/customised price-quality regulation - Customised price-quality paths

53V: Determination setting customised price-quality path

You could also call this:

"A customised price-quality path is a special plan that sets prices and service quality for a supplier."

Illustration for Commerce Act 1986

The Commission can decide on a customised price-quality path for a supplier who has made a proposal. You can think of a customised price-quality path as a plan that sets the prices a supplier can charge and the quality of service they must provide. The Commission can choose a plan that is different from the standard plan that would normally apply.

The Commission has some options when deciding on a customised price-quality path that meets the requirements of section 53M. They can set a price-quality path that is not as good for the supplier as the standard plan. If they set a lower or higher price, they can also apply something called claw-back. With the supplier's agreement, they can change the way they work out certain costs.

A customised price-quality path is put in place by changing the section 52P determination that applies to the supplier. This means the customised plan becomes part of the rules that the supplier must follow.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1685629.


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53U: Extension of time frames, or

"More time to sort things out: up to 30 extra working days can be added"


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53W: Term of customised price-quality paths, or

"How long a customised price-quality plan lasts, usually 5 years, but can be 3-5 years"

Part 4Regulated goods or services
Default/customised price-quality regulation: Customised price-quality paths

53VDetermination setting customised price-quality path

  1. The Commission may determine any customised price-quality path that the Commission considers appropriate for a supplier that has made a proposal.

  2. To avoid doubt, and without limitation, in determining a customised price-quality path that complies with section 53M the Commission may do any of the following:

  3. set a price-quality path that is lower, or otherwise less favourable to the regulated supplier, than the default price-quality path that would otherwise apply:
    1. if it sets a lower or a higher price than applied under the default price-quality path, apply claw-back:
      1. with the agreement of the supplier, vary an input methodology that would otherwise apply to the supplier.
        1. A customised price-quality path for a supplier is imposed by way of an amendment to the section 52P determination relating to the default/customised price-quality regulation applying to the supplier.

        Notes
        • Section 53V: inserted, on , by section 4 of the Commerce Amendment Act 2008 (2008 No 70).