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.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news