Productivity Analysis Study for New Zealand Electricity Distributors

The Commission regulates New Zealand�s electricity distribution businesses (EDBs) and national grid owner (Transpower) under Part 4 of the Commerce Act 1986 (Part 4) for the long-term benefit of consumers. Part 4 includes Information disclosure regulation, which applies to all EDBs, and requires public disclosure of information on the EDBs� performance and network plans.

The Commission has a statutory obligation under Part 4 to publish a summary and analysis of disclosed information for the purpose of understanding the changes in EDBs� performance over time. Such analysis can examine the relative performance of EDBs, which includes their productivity and efficiency.

In accordance with this obligation the Commission is undertaking a study of the productivity and efficiency of New Zealand EDBs. The study will be undertaken in three phases: Phase One � Total factor and partial productivity analysis of the EDB sector An assessment of the total factor productivity (TFP) and partial factor productivity (PFP) for EDBs in aggregate.

Phase Two � Proof of concept for EDB comparative efficiency study Develop and test appropriate analytical technique(s)/methodology for assessing EDBs� relative productivity and efficiency, including incorporating engineering expertise.

Phase Three � Apply analytical technique(s) and methodology to produce EDB comparative efficiency analysis and performance assessment Select and apply the chosen analytical technique(s)/methodology to EDBs to obtain draft comparative EDB efficiency/productivity analysis.

The Commission is seeking an experienced consultancy firm(s) to undertake phase one of the study - Total factor and partial productivity analysis for EDBs in aggregate.