Millions hang on Commerce Commission calculations

In this edition:Friction as the Commerce Commission changes the way it calculates regulated returns.2degrees picks up Now's business customersSpark offers data centre connectivity service.Fibre companies dispute regulated returns modelThe Commerce Commission is changing the way it calculates the return regulated infrastructure companies are allowed to earn. This week infrastructure companies, including Chorus and Enable Networks, submitted on the Commission’s technical consultation on matters relating to the tax-adjusted market risk premium (TAMRP).One of the key arguments to emerge from the submissions is the question of how far back you should look when deciding what is a reasonable return. A core debate centres on historical data windows, specifically whether to look at market trends starting from 1931 or 1900.While this sounds esoteric, in practice it can make a substantial difference to the profits fibre companies can earn.Historic dataAlong the way, the Commerce Commission plans…