Regulator proposes gas distribution revenue cap of up to $42M a year for pipeline companies

Thu, 09 Feb 2017

By Paul McBeth Feb. 10 (BusinessDesk) - The Commerce Commission is proposing to cap regulated sales for gas pipeline firms, including NZX-listed Vector, which it estimates will lower their maximum revenue by 18 percent a year. In a draft decision, the regulator today set out the default price-quality path for GasNet, Powerco, Vector and First Gas starting from Oct. 1 and spanning the next five years. The commission wants to reduce the gas pipeline businesses' maximum revenue by $42 million a year, due largely to a lower cost of capital f...

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