Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Powerco Disappointed By Commerce Commission

Thursday, August 25, 2005

Powerco Disappointed By Commerce Commission Provisional Authorisation

Powerco today expressed disappointment at the Commerce Commission’s provisional authorisation to control its gas line prices.

Powerco Chief Operating Officer Richard Krogh said the Company would be reviewing its options but was clearly disappointed by the Commerce Commission’s provisional authorisation given the judicial review proceedings are still on foot and that Powerco believes these proceedings will result in the price control decision (the Order in Council) being set aside.

Mr Krogh noted that the Commerce Commission had itself calculated that imposing price control on Powerco would have a negative impact on New Zealand as a whole

“The Commerce Commission calculated that there would be a loss of $732,000 to the economy. The Ministry of Economic Development’s advice to the Minister of Energy noted that the results of the Commerce Commission’s net public benefits test showed “that across all business there is a net public cost, that is New Zealand as a whole is worse off from control being imposed” (see para 72 of 7 July 2005 paper).”

Mr Krogh further noted that Treasury recommended that the Minister of Energy not impose control.

Powerco is New Zealand’s second largest electricity and gas distribution utility with around 400,000 consumers connected to its networks. Powerco’s electricity networks are in Tauranga, Thames, Coromandel, Eastern and Southern Waikato, Taranaki, Wanganui, Rangitikei, Manawatu and the Wairarapa. Its gas pipeline networks are in Taranaki, Hutt Valley, Porirua, Wellington, Horowhenua, Manawatu and the Hawke’s Bay.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news