The Commission has warned electricity and gas distribution company Vector Limited for its regulatory treatment of sale and leaseback transactions, which took place in March 2020. Vector’s approach to valuing those transactions was inconsistent with the Commission’s regulatory rules, resulting in a $300m Regulatory Asset Base revaluation. This would have enabled the company to significantly increase charges to consumers, without providing any service improvements or infrastructure investment. In October 2022, Vector reversed its treatment of the transactions and the Commission is satisfied that the reversal steps taken by Vector meet the Commission’s enforcement aims.
PartiesVector Limited
Category
Regulation
Sub-category
Act/Section
Commerce Act ss 86, 87
Industry
Electricity, gas, water, and waste services
