The New Regulatory Regime for Electricity Lines Businesses: Great Expectations Unfulfilled

Abstract

A new regulatory regime applying to Electricity Lines Businesses (ELBs) will come into force on 1 April 2009. These reforms are set out in the Commerce Amendment Bill 2008 which passed its Third Reading on 5 September 2008. Although many commentators have welcomed the Bill it may well prove to be disappointing. In particular compromise over a dynamic efficiency objective lack of clarity about an introduced concept "input methodologies" and limited appeal rights portend uncertainty and issues to be resolved.