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- Release Date: 28/02/13 11:12
- Summary: COMCOM: VCT: Commission requires Vector to reduce future gas prices
- Price Sensitive: No
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VCT
28/02/2013 09:12
COMCOM
REL: 0912 HRS Vector Limited
COMCOM: VCT: Commission requires Vector to reduce future gas prices
The Commerce Commission's final gas distribution and transmission price
decisions are in line with the draft gas price path decisions released in
October 2012 and are no surprise, according to Vector's Chief Executive,
Simon Mackenzie.
Today's announcement by the Commission requires a reduction in gas
distribution and transmission prices, however the future revenues the
Commission allows Vector are largely unchanged from their draft decision.
Mr Mackenzie said it was timely to recap the events leading to the
Commission's decision:
o Vector's gas pipeline businesses have been regulated by the Commission
since 2005 and Vector has complied with the various price control regimes.
o As part of the regulatory re-set process, the Commission has reduced our
future prices in line with their view on future capital expenditure, costs
and allowable returns for the next five year period.
Mr Mackenzie said Vector's focus remained on the Merits Appeal process in
which the Commission's input methodologies are being challenged. A key reason
for the appeal is to ensure the regulatory regime provides appropriate
incentives to invest and deliver resilient essential infrastructure. The
Merit Review process is drawing to a close with court judgments expected to
be delivered in the second quarter of this calendar year.
"The Commission's decision will need to be revised if the Merits Appeal
action taken by Vector and others is successful," he said.
ENDS
End CA:00233558 For:VCT Type:COMCOM Time:2013-02-28 09:12:18
