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


Transpower cooperates with Commerce Commission

29 November 2005

Transpower cooperates with Commerce Commission investigation

Transpower is cooperating fully with the Commerce Commission’s investigation into the planned price rises to take effect from 1 April 2006.

Transpower is required to calculate its prices according to the Electricity (Transpower’s Pricing Methodology) Regulations 2004. Using this methodology results in an overall increase of 19% from 1 April 2006. This is due to the significant level of investment that is needed in the National Grid to ensure consumers have a secure electricity supply. Transpower is also subject to a Commerce Commission revenue threshold, which increases yearly at the rate of inflation minus one percent. Any revenue collected above this threshold has to be justified to the Commission.

Yesterday the Commerce Commission asked Transpower to supply it with all relevant documents relating to the planned price changes. Transpower chief executive Ralph Craven says those documents have been delivered to the Commission today.

“Transpower will cooperate fully with the Commerce Commission, as we have done during their ongoing investigation into our revenue from previous years.

“I strongly reject any suggestion that Transpower has failed to respond appropriately during that investigation. We have provided all the information asked of us to date.

“The Commerce Commission sets a revenue threshold, and Transpower is required to justify any revenue collected above that threshold. Transpower believes that it can fully justify its investment plans.

“Transpower is not putting up its prices to increase profits or generate excessive returns. We need to borrow more, retain more earnings and pay the government much smaller dividends, and increase our prices, to fund urgently needed investment in critical New Zealand infrastructure,” Dr Craven said.

Transpower’s customers include generators and lines companies. If the
Transpower increase from 1 April 2006 is fully passed on to end-users, a typical domestic consumer could see an increase of around $2.00 a month in their electricity bill. Transmission charges will still be less than they were in the mid-1990s, as a result of significant reductions in Transpower’s prices since 1999.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Paymark: Lockdown Equals Slowdown For Some

The three days of lockdown for Auckland earlier this month made a clear impression on our retail spending figures. While only Auckland moved into Level 3 lockdown, the impact was felt across the country, albeit at different levels. Looking at the ... More>>

Infrastructure Commission: Te Waihanga Releases Report On Water Infrastructure

The New Zealand Infrastructure Commission, Te Waihanga’s latest discussion document highlights the importance of current reforms in the water sector. Its State of Play discussion document about water infrastructure is one of a series looking at the ... More>>

Sci-Tech: Perseverance Rover Lands On Mars – Expert Reaction

NASA has landed a car-sized rover on the red planet to search for signs of past life. The vehicle has more instruments than the four rovers preceding it, and it’s also carrying gear that could help pave the way for human exploration of Mars. The ... More>>


ASB: Quarterly Economic Forecast Predicts OCR Hike As Early As August 2022

Predictions of interest rate rises have been brought forward 12 months in ASB’s latest Quarterly Economic Forecast. Chief Economist Nick Tuffley now expects the RBNZ to begin raising the OCR from its current level of 0.25% as early as August ... More>>

ACT: Matariki Almost A Half Billion Dollar Tax On Business

“Official advice to the Government says an extra public holiday at Matariki could cost almost $450 million,” ACT Leader David Seymour can reveal. “This is a perfect example of the Prime Minister doing what’s popular versus what’s responsible. ... More>>

Genesis: Assessing 6,000 GWh Of Renewable Generation Options For Development By 2025

Genesis is assessing 6,000 GWh of renewable generation options for development after starting a closed RFP process with 11 partners. Those invited to participate offer a range of technologies as Genesis continues to execute its Future-gen strategy to ... More>>

OECD: Unemployment Rate Stable At 6.9% In December 2020, 1.7 Percentage Points Higher Than In February 2020

The OECD area unemployment rate was stable at 6.9% in December 2020, remaining 1.7 percentage points above the level observed in February 2020, before the COVID-19 pandemic hit the labour market. [1] In December, the unemployment rate was also stable ... More>>

Stats NZ: Unemployment Drops To 4.9 Percent As Employment Picks Up

The seasonally adjusted unemployment rate dropped to 4.9 percent in the December 2020 quarter, from 5.3 percent in the September 2020 quarter, Stats NZ said today. Last quarter’s unemployment rate of 5.3 percent followed the largest increase observed ... More>>