Gas Control Inquiry - one month extension

5 October 2004

Gas Control Inquiry: Commission receives one month extension

The Commerce Commission has received a one month extension to complete its analysis for its report on whether gas pipeline services should be controlled. The Commission requested and received the extension from the Minister of Energy, Hon Pete Hodgson, and will now report its final recommendations to the Minister on 29 November 2004.

The Commission released its draft report in May 2004. On the basis of information available at that time, the Commission’s preliminary view was that control should be imposed on two gas transmission businesses and three gas distribution businesses.

During consultation on the Commission’s draft report, a number of parties suggested that some of the tax numbers provided by the gas pipeline businesses did not correctly incorporate the interest tax shield. The Commission considered this matter and earlier this month released a discussion paper that outlined how the Commission would treat tax in preparing its final recommendations.

Submissions on that paper closed last week and the Commission requires additional time to investigate these and other matters raised by parties before completing its final report.

The Minister requested the Commission to undertake the Gas Control Inquiry in April 2003. The Commission has been requested to report on whether goods and services supplied by persons in markets directly related to either a gas transmission system or a gas distribution system or both (gas services) should be controlled.

ENDS

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