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- Release Date: 21/08/12 12:58
- Summary: GENERAL: VCT: Vector's focus remains on Appeals process
- Price Sensitive: No
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VCT
21/08/2012 10:58
GENERAL
REL: 1058 HRS Vector Limited
GENERAL: VCT: Vector's focus remains on Appeals process
The Commerce Commission's draft electricity distribution price decision,
released today, reinforces that the company's decision to challenge the
Commerce Commission's input methodologies is the right one, according to
Vector's Chief Executive, Simon Mackenzie.
"Today's announcement by the Commission mirrors last year's draft price path
decision. Despite being under price regulation since 2001 and keeping within
the regulated price path, the Commission's draft decision proposes that we
reduce our electricity distribution prices by an average of eight percent in
2013. Additionally, there will be a further price adjustment to back date the
change to 2012.
Mr Mackenzie said that today's decision is based on flawed methodologies,
such as the assumed asset values and WACC, as well as not providing a
complete regulatory package.
"We are at half time in the regulatory process. The second half will
commence later this year when the Merits Review of these assumptions is heard
in the High Court. This process is our main focus.
Mr Mackenzie said the Commission's decision will need to be revised if the
court action, taken by Vector and others, is successful.
"We have not taken legal action lightly. Only through testing this new
regulatory regime through the courts, will we arrive at a robust set of
regulatory arrangements and the regulatory certainty New Zealand needs," said
Mr Mackenzie.
ENDS
End CA:00226225 For:VCT Type:GENERAL Time:2012-08-21 10:58:56
