Vector wins $4.6m in gas row

Vector will book just under $5 million following a Supreme Court victory over Bay of Plenty Energy in a dispute over transmission costs.

Bay of Plenty Energy, a Todd Energy subsidiary, had claimed a 2004 gas supply agreement which priced gas at $6.50 a gigajoule included the cost of transmission. Vector had disputed this, successfully arguing in the High Court the deal was exclusive of transmission costs of $1.86 a gigajoule.

While Bay of Plenty Energy successfully appealed to the Court of Appeal this was overturned by the Supreme Court in a decision released yesterday which ordered Vector must be paid $4.68 million plus interest and costs.

Vector's chief executive Simon Mackenzie said the case was a one-off and no other customers had disputed contracts in this way.