Commerce Act 1986

Regulated goods or services - Electricity lines services - Transitional arrangements

54N: Breaches of thresholds and default price-quality paths before 1 April 2010

You could also call this:

"Rules for dealing with breaches that happened before 1 April 2010"

Illustration for Commerce Act 1986

If you breach a threshold or a default price-quality path before 1 April 2010, the Commission has some rules to follow. The Commission can decide what to do about the breach, but there are time limits for taking action. You can think of a threshold like a limit that should not be crossed, and a default price-quality path is like a plan for how something should be done.

The Commission may publish a notice about the breach, but only within certain time frames. For example, if the breach happened before 31 March 2007, the Commission cannot publish a notice after 1 October 2008. If the breach happened between 1 April 2007 and 31 March 2009, the Commission has 12 months after the end of the financial year to publish a notice.

The Commission can then decide to make a control declaration or enter into an administrative settlement under Part 4A. This means they can take action to control what happens next or come to an agreement about how to fix the breach. The Commission can do these things as if the Commerce Amendment Act 2008 had not been passed, but they still have to follow some rules.

If the Commission imposes control or enters into a settlement, it can only last for up to 5 years. After that, it's like the end of a customised price-quality path, and certain rules apply. The Commission might use input methodologies when making decisions, but they do not have to.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1685700.


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54M: Administrative settlements with Transpower made before 1 April 2009, or

"Deals with agreements made with Transpower before 1 April 2009 if you broke the rules"


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54O: Breaches of control imposed, or administrative settlements entered into, after 1 April 2009, or

"Rules for breaking agreements made after 1 April 2009"

Part 4Regulated goods or services
Electricity lines services: Transitional arrangements

54NBreaches of thresholds and default price-quality paths before 1 April 2010

  1. This section applies to—

  2. any breach of a threshold that occurred before the close of 31 March 2007; and
    1. any breach of a threshold that occurs on or after 1 April 2007 and before the close of 31 March 2009; and
      1. any breach of a default price-quality path that occurs on or after 1 April 2009 and before the close of 31 March 2010.
        1. The Commission may not publish a notice of intention to declare control under Part 4A,—

        2. in respect of a breach referred to in subsection (1)(a), at any time after 1 October 2008; and
          1. in respect of a breach referred to in subsection (1)(b) or (c), at any time after the expiry of 12 months after the end of the financial year in which the breach occurs.
            1. The Commission may, at any time before the expiry of 12 months after the date on which the Commission publishes a notice of intention to declare control under subsection (2) in respect of the breach,—

            2. make a control declaration under Part 4A; or
              1. enter into an administrative settlement in respect of the breach under Part 4A.
                1. The Commission may do anything under subsections (2) and (3) as if the Commerce Amendment Act 2008 had not been enacted, except that the purpose in section 52A must be taken to be the purpose of Part 4A.

                2. To avoid doubt, the Commission may, but need not, apply input methodologies in acting under subsection (3).

                3. Despite anything in Part 4A, any control imposed, or administrative settlement entered into, under Part 4A in accordance with subsection (3) is subject to the following:

                4. the term of control, or of the settlement, must be not more than 5 years:
                  1. the expiry of the term must be treated as if it were the expiry of a customised price-quality path, and section 53X applies accordingly (unless the supplier concerned would not otherwise be subject to default/customised price-quality regulation after the expiry of the term).
                    Notes
                    • Section 54N: inserted, on , by section 4 of the Commerce Amendment Act 2008 (2008 No 70).