Consumers pay as Vector rebalances charging regime

By NZPA

Wednesday 21st February 2007

Auckland and Northland retail electricity users will have to pay an extra $5 to $6 a month on their line charges as a result of lines company Vector being forced to "rebalance" its charging regime.

Bills for Wellington retail customers will drop on average by $1 a month.

Some commercial customers within Vector's Auckland network will receive price cuts and others increases, depending which tariff they are on. All commercial customers on the Wellington network and the majority on the Northern network will get price reductions.

The country's biggest electricity and gas distributor announced its plan to rebalance its electricity line charges, to avoid price controls being imposed by competition watchdog, the Commerce Commission.

The scheme still requires final approval from the regulator, who last August threatened to take control of Vector's pricing, saying the Auckland-based company had abused its monopoly position and favoured its local customers, who control 75% of the company.

The changes come into effect on April 1.

In October, the commission agreed in principle to Vector voluntarily resetting its line charges, but a final decision is subject to a public consultation process.

Earlier this month, Vector reported its half-year net profit rose 19% to $45.7 million.

Vector is 75% owned by an Auckland-based consumer electricity trust.

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