VCT
04/07/2014 09:29
GENERAL
REL: 0929 HRS Vector Limited
GENERAL: VCT: Vector considering Commerce Commission decision on price ca
The Commerce Commission has released its draft decision on the Default
Pricing Path (DPP) today. It can be found at
www.comcom.govt.nz/regulated-industries/electricity/electricity-default-price
-quality-path/default-price-quality-path-from-2015/.
Vector Limited is considering any possible impacts from a reset of the DPP,
the mechanism that sets prices for electricity line charges across the
industry.
Vector CEO Simon Mackenzie said it was too soon to accurately assess the
impact of any changes as the draft decision remained subject to a lengthy
period of consultation. Other decisions would also likely impact the DPP
before a final pricing determination would be announced by the Commerce
Commission at the end of November.
The Commerce Commission is also expected to announce a draft decision on the
percentage it will use when calculating the Weighted Average Cost of Capital
(WACC) component of the DPP, later this month. WACC is one of the five key
components the Commerce Commission uses in determining pricing.
Under regulation the Commerce Commission resets the DPP every five years, a
cycle in common use throughout regulated industries in New Zealand and
overseas.
End CA:00252440 For:VCT Type:GENERAL Time:2014-07-04 09:29:23
