Vector unhappy with ComCom's draft WACC decision

The Commerce Commission has provisionally decided to lower the rate of return for assessing company profitability – and network provider Vector is not impressed.

A draft decision released this morning shows the commission wants to lower the weighted average cost of capital (WACC) from the 75th percentile to the 67th percentile.

Companies in the energy, telecommunications and transport sector must refer to the WACC when setting price because they are regulated by the commission.

 

Want to read more?

Choose a Subscription type that's right for you HERE
Already have an account? Login