Watchdog sets out Transpower rules

The form of regulatory oversight being proposed by the Commerce Commission for Transpower is not dissimilar to that provided under an administrative settlement that expires in the middle of next year.

A draft reasons paper for the commission's Transpower proposal published yesterday said that under the proposed regulation Transpower would remain subject to a cap on revenue. But instead of applying to a one-year period, the cap would apply to an initial four-year control period, followed by five-year periods.

Transpower would remain subject to reviews of its operating and capital spending plans, performance against quality standards, and would retain a similar economic value framework, the draft paper said.

Submissions on the draft paper are due by August 6.

- NZPA