New Zealand Gazette – 2008 – No. 90

Page 2462

✨ Commerce Commission Decision



2462 NEW ZEALAND GAZETTE, No. 90 30 MAY 2008

invited interested persons to give their view on the matter by 11 February 2008 and
submissions were received on this date. Cross-submissions were requested and
received on 25 February 2008.

Decision not to declare control

The Commission has had regard to all views expressed by interested parties at the
conference and in written submissions in relation to this matter.

The Commission has determined not to make a declaration of control under Part 4A
in respect of electricity distribution services supplied by Vector, for the following
reasons:

  • The Commission has the ability to enter into an administrative settlement with a
    business that has breached the thresholds in order to further the objectives of the
    targeted regime in Part 4A of the Act.

  • Vector’s Proposal involves the company voluntarily rebalancing its line charges
    to different regions and customer groups—subject to its existing price path
    threshold—so that the prices paid by consumers better reflect the underlying
    costs, demand and service quality.

  • Vector’s compliance with its existing thresholds and its commitment to address
    the pricing inefficiencies identified by the Commission will promote behaviour
    consistent with the purpose in section 57E of the Act at a lower administrative
    and compliance cost than control.

  • Having evaluated Vector’s Proposal and taken into account the views of
    interested parties, the Commission considers that the likely outcomes associated
    with the implementation of Vector’s Proposal are consistent with the purpose in
    section 57E of the Act. Therefore a declaration of control in respect of Vector’s
    electricity distribution services is not necessary to ensure the objectives of the
    targeted control regime are achieved.

  • In accordance with the Proposal, Vector has already implemented the first two
    stages of the rebalancing programme set out in the Proposal, through price
    changes on 1 April 2007 and 1 April 2008 which rebalance tariffs between
    regions and customer groups.

  • Vector has formally recorded its Proposal in a deed, which has been signed and
    executed by Vector and the Commission.

A more comprehensive explanation of the reasons for the Commission’s decision not
to declare control of Vector is contained in the paper titled Commerce Commission,
Regulation of Electricity Lines Businesses, Targeted Control Regime, Reasons for Not
Declaring Control, Vector Limited dated 30 May 2008. A copy of this paper can be
located on the Commission’s website: www.comcom.govt.nz.

Any comments and questions on this notice may be sent by email to:
electricity@comcom.govt.nz; or by mail to Network Performance Branch, Commerce
Commission, P.O. Box 2351, Wellington; or by facsimile (04) 924 3700.

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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2008, No 90


Gazette.govt.nz — PDF NZ Gazette 2008, No 90




✨ LLM interpretation of page content

🏭 Decision not to declare control: Vector Limited (continued from previous page)

🏭 Trade, Customs & Industry
30 May 2008
Commerce Act, Vector Limited, Control Declaration, Electricity Lines, Thresholds, Administrative Settlement, Price Rebalancing, Compliance, Section 57E
  • Commerce Commission