Price increases unavoidable - Trust - 21 February 2007 Print
The price increases announced by Vector today are unavoidable, says the Auckland Energy Consumer Trust.

Trust Chairman Warren Kyd said the effect upon the average Auckland household would be between $64 and $74 a year.

“This translates to between $5 to $6 a month and will be off-set by the $310 dividend payment Trust beneficiaries received in September,” he said.

“Some of the movement simply passes on increases in distribution charges from Transpower but most of it comes from the four year rebalancing programme Vector is engaged upon to smooth rates of return between regions and among its different customer classes.

“Although Vector embarked upon this rebalancing voluntarily, the Commerce Commission has now made it a condition of the administrative settlement process it has entered into with Vector and has said that it will be requiring other lines businesses to also rebalance.

“The Trust has supported the administrative settlement as being in the best interests of consumers, investors and its beneficiaries. The alternative was price control, even the threat of which in August last year was sufficient to wipe hundreds of millions off Vector’s share price,” Mr Kyd said.

“This round of price adjustments is the third instalment in the series. The final one will take effect at 1 April next year,” he said.

Contact: Warren Kyd 0274-462-489