Appeal Court Confirms Transpower's Pricing
"A full bench of the Court of Appeal has upheld Transpower's view that any challenge to the pricing of services from the national electricity grid should be applied under the Commerce Act and State- owned Enterprise Acts". Transpower's Chief Executive, Bob Thomson, said today.
On Tuesday this week, the Court of Appeal upheld a High Court decision in Vector (formerly Mercury Energy) v Transpower. Vector had argued that Transpower, as an essential service provider, was required to comply with the Doctrine of Prime Necessities, that is, its pricing had to meet the test of being fair and reasonable.
"This ruling does not mean that our pricing can be unfair and unreasonable. What it means is that the test of our pricing in future is whether it complies with the Commerce Act and the State- owned Enterprises Act," Mr Thomson said.
"This is important because Transpower's pricing methodology is regulated by Government through both these Acts to be economically efficient. The Court of Appeal's confirmation of this means we are in much stronger and clearer position to face future challenges to our pricing," he said.