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Vector wins $4.6m dispute with BOP Energy over gas charges

Wednesday 10th February 2010

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Vector has won a protracted dispute with customer Bay of Plenty Energy over transmission costs, in a Supreme Court decision published today.  

The dispute involved a 2004 gas supply agreement between Vector and BoPE, which priced gas at $6.50 a gigajoule, and which BoPE said included the cost of gas transmission. Auckland-based Vector disputed this, prevailed in the High Court, was overturned on appeal, and has now got a final determination in its favour from the Supreme Court.

The amount owing as a result of a finding that the contract did not include transmission costs was approximately $4.6 million, Justice Peter Blanchard said in his written decision.  The decision turned in large part on the fact that Vector and BoPE were already in dispute at the time the $6.50 per GJ price was agreed, and that the terms of the original contract, which included a transmission-inclusive gas price, could not be relied upon as a guide to the issue in question.

Vector shares rose 0.5% to $1.94 on the NZX today and have fallen about 4% this year.

Businesswire.co.nz



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