Commerce Commission investigating Unison

Hawke's Bay power prices could be forced down to among the lowest in New Zealand if the Commerce Commission introduces the price controls it is threatening to impose on Unison.

However, Unison chief executive Ken Sutherland says consumers would suffer in the long run if the commission forced the company to charge less because the Hastings- based lines company would be forced to cut spending on its network.

"This year we are looking at investing $26 million in our network and if somebody is taking in excess of $15 million out of our business something's got to give," Mr Sutherland said.

"It means consumers will pay less in the short term and more in the long term."

The commission has accused the company, which is owned by the people of Hawke's Bay, of overcharging power consumers and is promising the region's consumers an extra $77 a year, Taupo consumers an extra $321 and Rotorua $193, if it forces the company to reduce its pricing.

The decision will not be made until November, when the commission will take into account public submissions concerning its preliminary findings.

- HAWKE'S BAY TODAY