Court dismisses lines companies’ appeal

The Commerce Commssion said today the High Court had dismissed an appeal by four electricity lines companies against threshold decisions and the commission's consultation process.

The lines companies, Electra Limited, The Lines Company, Centralines, and Counties Power, had argued the consultation process for setting the thresholds was flawed and the threshold decisions were unreasonable.

As part of its targeted control regime, the commission sets performance thresholds for lines businesses. If businesses breach those thresholds, the commission may in certain cases assume control of prices, revenue and service quality.

The commission said in a statement that Justice Ellen France ruled that the consultation process was open and wide-ranging and that at some point the commission had to be able to move on and make a decision.

"She also noted that it is relevant that the thresholds are a screening mechanism to trigger further inquiry, and do not necessarily lead to control," the commission said.

The line companies said that rebates paid to customers should be taken into account when comparing performances.

Commission chair Paula Rebstock welcomed the judgement, which responded to the first legal challenge to the commission's threshold decisions.

- NZPA