$1.7m yearly for the Commerce Commission
Commerce Commission funding has been increased.
There will be increased funding for the Commerce Commission to regulate electricity and gas lines, and airports, Commerce Minister Simon Power announced today.
Following public consultation, cabinet approved an average levy increase of $1.7 million for the next three years. There will then be a review.
Mr Power said an increase in funding was appropriate in order to ensure that investors had incentives to innovate, prices charged by monopoly suppliers are not excessive, and service quality standards are maintained.
“The additional funding will enable the commission to provide a quality regulation regime for the long-term benefit of consumers.”
Under Part 4 of the Commerce Act, the commission regulates the price and quality of goods and services in markets which are considered monopolies, and regulated suppliers pay the commission a levy.
Mr Power said the current levels of funding for the commission needed updating because they were set before comprehensive changes to Part 4 in 2008.
Funding levels vary from year to year, according to the regulatory functions the commission is required to perform in each year. The funding levels also vary by sector.
The levy amount for each supplier will be based on the size of the supplier’s regulated asset base and the level of regulatory activities relating to that supplier.
NBR staff
Thu, 07 Jul 2011
Thu, 07 Jul 2011
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$1.7m yearly for the Commerce Commission
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