Commerce Commission Draft Decision Risks Constraining Growth
Vector acknowledges the release of the Commerce Commission’s draft 2020-2025 Default Price-quality Path (DPP) for electricity distribution businesses and will be closely reviewing the draft decision.
Vector Chief Networks Officer Andre Botha said: “Today’s draft decision gives all parties a starting point to work together on getting the settings right so that we can invest appropriately in Auckland and help achieve Central and Local Government objectives for the city.”
“What this draft decision doesn’t yet take into account is Vector’s latest forecasts for capital and operating expenditure in a growing city, published earlier this year. It is critical for Auckland that they do so.”
“Aucklanders want a safe electricity network that is not only reliable, affordable, and in the long-term interests of consumers, but also one that can cater for significant housing growth while continuing to enable EV charging, adapt to climate change, and facilitate choice through customer-adopted technologies such as solar panels and batteries.”
“It’s crucial regulatory settings work for Auckland which is facing unprecedented growth and the need for investment in Auckland’s electricity infrastructure to enable this growth. This is because the Commission’s decisions in effect limit the amount Vector can spend on building and maintaining the Auckland infrastructure required into the future.
“This is not an electricity issue, it’s an Auckland issue. Unless the regulator appropriately recognises Auckland growth and the resources required to provide the necessary electricity connections and upgrades, Vector will be constrained in its ability to deliver for Auckland and support Central and Local Government objectives for the region.
“Vector will continue to constructively engage with the Commission’s process from here and will work closely with other key Auckland stakeholders to advocate for settings that facilitate rather than constrain sufficient investment in Auckland to support Central and Local government objectives around the future of the city and energy.”