The Dominion Post today quotes commission chair Paula Rebstock as saying the commission had the power to investigate whether several of NZ's 28 lines companies were charging more than a fair price.
Rebstock said that in a competitive market lines companies, which were natural monopolies in their reticulation areas, should not be able to charge higher prices and then give rebates. Some trust-owned lines companies were moving in the right direction - away from discretionary rebates and towards specific discounts in lines charges.
She also warned network companies that had low lines charges for their consumer owners and higher charges for other parts of their network against any cross-subsidisation, saying the commission had the power to control “any subset of prices and revenues".
Auckland-based Vector has an agreement with its owner, the Auckland Energy Consumer Trust, not to raise prices more than the rate of inflation for the AECT’s 260,000 customer-beneficiaries in Auckland.
