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The country's biggest lines company, Vector, says the agreement it struck with the Commerce Commission over its charging structure is another step towards a more stable regulatory regime.
The agreement follows a threat by the commission in 2006 to declare control over the distribution services of Vector after concluding its pricing strategy was unfair.
Some consumer groups were being significantly overcharged while others, including Auckland residential consumers, were being undercharged.
Vector chief executive Simon Mackenzie said he was pleased the long and complex process had now been constructively resolved.
"It is a very positive outcome for our shareholders, and should be welcomed by the rating agencies who have had concerns about the prospect of price control."
Vector's distribution charges are 20 to 40 per cent of the average power bill.
Vector shares closed down 1c at $1.95 yesterday.
* Vector shareholders will vote on the $785 million sale of its Wellington network to Cheung Kong Infrastructure at a special meeting on June 16. Proceeds from the sale will be used to retire debt. The meeting at Auckland's Ellerslie Convention Centre will start at 9.30am.
