Vector disappointed Appeal Court overturns price review
BUSINESSDESK: Auckland gas and electricity lines company Vector is disappointed with a Court of Appeal decision overturning a judicial review of the way the Commerce Commission regulates price-setting for monopoly utility providers.
The company claimed making investment decisions was hindered by the exclusion of the process and rules to set the starting price in the regulator's input methodologies, and won a High Court-ordered review in September last year.
The so-called "default price path" determines how much monopoly network owners can earn from their assets.
"While it’s not a positive outcome, it’s still part of a larger process and we don’t see it having an impact on our operations today," chief executive Simon Mackenzie said.
"The material issues will be heard in the merits appeals later this year and we will be considering our options with respect to this Court of Appeal decision."
The regulator appealed the High Court decision, saying it could "potentially require the commission to develop other process input methodologies that we do not believe were intended by Parliament".
Shares in Vector fell 2.2% to $2.63 in trading today, and have climbed 10% this year.