The Commerce Commission has reached a deal with Transpower which will save consumers money.
Under the settlement the 19.1% price increase announced by Transpower in 2006 has been reduced to 10.2%. Transpower's estimated average price increase for 2007/08 has been reduced from 13% to 8.1%, and in 2008/09 from 13% to 6.3%.
The commission says the deal represents a saving of around $240 million over three years for consumers. But it says it still ensures the company undertakes the necessary investments to maintain the national grid.
"As well as more appropriate pricing, Transpower now has strong incentives to invest and make further efficiency improvements by outperforming its thresholds. This is consistent with the objectives of the regulatory regime," says Commerce Commission Chair Paula Rebstock.
She says the outcome is an excellent deal for consumers.
