Vector Seeks to Clarify Electricity Authority Jurisdiction

Vector Seeks to Clarify Electricity Authority Jurisdiction

Vector, together with its majority shareholder Entrust, has today filed proceedings in the High Court in Wellington.

Vector is seeking a declaratory judgment to clarify the law around whether or not the Electricity Authority (EA) has the jurisdiction to impose a standardised, mandatory Default Distribution Agreement (DDA)*.

Vector Chief Executive, Simon Mackenzie said that the extent of the EA’s powers to mandate contractual terms of supply are not clear.

“Vector has a responsibility to its shareholders to understand and work within the regulatory framework. It will be useful for the industry, in particular other electricity distribution businesses (EDBs), for the Court to clarify the position,” he said.

Vector believes the declaratory judgement will help promote a workable regulatory regime by defining the parameters of the industry-only regulator, the Electricity Authority, and the Commerce Commission.

“The industry needs to know if the regulator (the Commerce Commission) says ‘yes’ but the EA says ‘no’, who should we listen to? Understanding that boundary is imperative, particularly given the constant advances in emerging technology that are impacting the industry,” Mr Mackenzie said.

There are no dates yet set for a hearing by the Court.

*Known in the industry as Use of Systems Agreements or UoSAs

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