Vector loses its fight against ComCom

Auckland lines company Vector has today lost its Supreme Court appeal against the Commerce Commission’s price setting case.

In June, the Court of Appeal overturned a decision from an earlier High Court ruling in favour of Vector.

Vector ceo Simon Mackenzie had called for a judicial review of the way the commission regulates price setting for monopoly utility providers such as Vector.

“Vector’s judicial review argument focused on the process and rules for setting the starting prices and the fact that these were not included in the final input methodologies, which makes investment decisions extremely difficult,” Mr Mackenzie said in June.

The Supreme Court dismissed Vector’s appeal and has ordered the monopoly to pay $40,000 costs to the Commerce Commission.

Commission spokeswoman Allanah Kalafatelis told NBR ONLINE the commission would spend some time working its way through the judgment.

Vector shares (NZX: VCT) have dropped 0.74% today to $2.70, after starting the year at $2.47.

bcunningham@nbr.co.nz


1 · Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

1 Comment & Question

Commenter icon key: Subscriber Verified

Now watch Comcom take Vector to task under their new disclosure compliance capability including civil/criminal prosecution.... There will be some mightly nervous smaller power companies out there. I expect that'll be the last $320/year dividend AECT pay for a couple of years as vector invest in the network to increase their capital asset base.

Reply
Share
  • 0
  • 0

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.6613 -0.0027 -0.41%
AUD 0.9383 -0.0014 -0.15%
EUR 0.5850 -0.0034 -0.58%
GBP 0.4570 -0.0020 -0.44%
HKD 5.1556 -0.0209 -0.40%
JPY 75.6480 -0.8520 -1.11%

Commods

Commodity Price Change Time
Gold Index 1198.6 9.760 2016-02-09T00:
Oil Brent 31.0 -2.620 2016-02-09T00:
Oil Nymex 28.0 -3.670 2016-02-09T00:
Silver Index 15.4 0.020 2016-02-09T00:

Indices

Symbol Open High Last %
NZX 50 6071.3 6088.8 6071.3 -0.86%
NASDAQ 4224.9 4329.6 4283.8 -0.35%
DAX 8980.7 9041.9 8979.4 -1.11%
DJI 16005.4 16136.6 16027.0 -0.08%
FTSE 5689.4 5739.2 5689.4 -1.00%
HKSE 19287.4 19397.9 19183.1 0.55%
NI225 16127.9 16163.0 16085.4 -2.54%