On Friday, the Commission said Hastings-based Unison had announced it would reverse its most recent planned electricity distribution price rises in the Taupo and Rotorua regions from April 1.

Commission chair Paula Rebstock said Unison would now work towards providing the commission with an “administrative settlement” offer by the end of May. An administrative settlement was an alternative to the commission declaring control of a company that had breached price or quality thresholds under the Commerce Act.

Rebstock said Unison’s figures suggested that the average Taupo consumer would save $NZ46 (almost $A40) per year, a reduction of about 8.3%, and Rotorua consumers about $40, a reduction of about 7.1%, because of the move.

“Unison’s decision to reduce prices underscores the effectiveness of the current regulation of electricity lines businesses. Workable solutions for consumers and businesses can be achieved without the commission necessarily having to impose control,” she added.

Any settlement would likely involve the commission and Unison agreeing on average price levels for the company for a number of years.

Last year, Unison became the first of 28 New Zealand energy network companies targeted by the commission after it found Unison’s return on investment to be excessive – 12.23% compared with the required 7.35%.

The Hastings company initially fought against the commission’s plans, saying those levels were needed for reinvestment in maintenance and improvements, but the High Court dismissed its appeal.