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Commerce Act 1986

Regulated goods or services - Default/customised price-quality regulation - What happens to price-quality paths if input methodologies change

53ZB: What happens to price-quality paths if input methodologies change

You could also call this:

"What happens to price plans if the rules for setting prices change?"

Illustration for Commerce Act 1986

If a price-quality path is set, it usually stays the same for the whole regulatory period. You can't change it just because an input methodology changes, except in certain situations. The Commission can reset a price-quality path if an input methodology changes after an appeal under section 52Z, and this change would have resulted in a different path being set initially.

When the Commission resets a price-quality path, they must follow the rules set out in section 53P. This means they have to apply the new input methodology to the price-quality path. You can think of an input methodology like a set of rules that helps decide how prices and quality are balanced.

If the Commission resets a price-quality path, they must also apply something called claw-back. This happens when the Commission changes a default or customised price-quality path under certain conditions, as outlined in the rules.

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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=DLM1685636.

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53ZA: What happens if Commission does not make decision within time frame, or

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53ZC: Price-quality path for individual businesses, or

"Rules for setting prices and quality for individual businesses that supply essential goods and services"

Part 4Regulated goods or services
Default/customised price-quality regulation: What happens to price-quality paths if input methodologies change

53ZBWhat happens to price-quality paths if input methodologies change

  1. Default or customised price-quality paths may not be reopened within a regulatory period on the grounds of a change in an input methodology, except as provided in subsection (2).

  2. Every default and customised price-quality path must be reset by the Commission in accordance with section 53P if—

  3. an input methodology changes as a result of an appeal under section 52Z; and
    1. had the changed methodology applied at the time the price-quality path was set, it would have resulted in a materially different path being set.

      1. When resetting a default or customised price-quality path under subsection (2), the Commission must apply claw-back.

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