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


Commission Requires Vector To Reduce Future Gas Prices

Commission Requires Vector To Reduce Future Gas Prices

The Commerce Commission’s final gas distribution and transmission price decisions are in line with the draft gas price path decisions released in October 2012 and are no surprise, according to Vector’s Chief Executive, Simon Mackenzie.

Today’s announcement by the Commission requires a reduction in gas distribution and transmission prices, however the future revenues the Commission allows Vector are largely unchanged from their draft decision.

Mr Mackenzie said it was timely to recap the events leading to the Commission’s decision:

Vector’s gas pipeline businesses have been regulated by the Commission since 2005 and Vector has complied with the various price control regimes.

As part of the regulatory re-set process, the Commission has reduced our future prices in line with their view on future capital expenditure, costs and allowable returns for the next five year period.

Mr Mackenzie said Vector’s focus remained on the Merits Appeal process in which the Commission’s input methodologies are being challenged. A key reason for the appeal is to ensure the regulatory regime provides appropriate incentives to invest and deliver resilient essential infrastructure. The Merit Review process is drawing to a close with court judgments expected to be delivered in the second quarter of this calendar year.

“The Commission’s decision will need to be revised if the Merits Appeal action taken by Vector and others is successful,” he said.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news