Recommendations
43. It is recommended that the Committee:
1 Note that the Commerce Act was amended in 2008 to put in place a revised regulatory regime for electricity lines businesses (including Transpower), gas pipeline businesses and major international airports;
2 Note that the costs of the regime are recovered by a levy on regulated parties (and therefore consumers);
3 Note that the existing electricity and gas sector levy regulations need to be replaced with new levy regulations to reflect the new regime and which also cover major international airports;
4 Note that interested parties have been consulted on the levy design;
5 Agree that the amount to be recovered by levy for regulation of each sector (electricity lines, gas pipelines, major international airports) should be allocated to businesses in proportion to their fixed asset valuations;
6 Agree that the new levy regulations should be based on the design detail outlined in paragraph 28a-c of this paper;
7 Invite the Minister of Commerce to issue drafting instructions to Parliamentary Counsel to give effect to the above proposals; and
8 Note that the Minister of Commerce intends to release this Cabinet paper and the Regulatory Impact Statement on the Ministry of Economic Development web site, except for Table One (because it contains information that is budget secret) and the figures in paragraph 31 (until Cabinet has approved revisions to the Commission's 2008/09 funding).
Hon Simon Power
Minister of Commerce
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