On 9 August 2006, the Commission published in the New Zealand Gazette its intention to make a declaration of control under Part 4A of the Commerce Act 1986 (now repealed), in respect of electricity distribution services supplied by Vector Limited (Vector). Vector is a distribution business that supplies distribution services to electricity consumers in the Auckland, Northern and Wellington regions.
Subsequently, on 23 January 2007, the Commission received an administrative settlement offer from Vector. Having reviewed Vector's offer, on 14 December 2007 the Commission published its draft decision not to declare control of Vector.
On 30 May 2008, the Commission issued its final decision to accept the administrative settlement offer provided by Vector. The Commission considered that control was not necessary to address the section 57E concerns previously identified as these would be addressed through acceptance and implementation of Vector's offer. Vector has agreed to rebalance its line charges to different regions and customer groups so that prices better reflect underlying costs, demands and service quality. This rebalancing will be completed by March 2009. Vector remains subject to the existing price-path and quality thresholds set by the Commission under Part 4A until 31 March 2009. Vector's offer also acknowledges that Vector will continue to invest in its distribution networks to maintain a secure, reliable and safe electricity supply. Â
