The Commerce Commission is awaiting an explanation from Hastings based electricity lines business Unison on its pricing structure.

Commission Chair Paula Rebstock said that Unison’s self assessment against the price path threshold, set by the Commission last year, indicated that Unison had breached that threshold due to price increases. In December 2003, the Commission asked Unison to provide more detailed information relating to its self assessment for the 2001-2003 period by 30 January 2004, and in addition, to provide information on any future price changes it might be proposing.

Unison announced this week further price increases that will affect electricity consumers in the Hawke’s Bay, Taupo and Rotorua regions.

Ms Rebstock said the Commission takes breaches of the thresholds seriously, and is prepared to investigate when necessary.

“The thresholds assessment is a trigger for the Commission to use when determining whether a formal investigation is required,” explained Ms Rebstock.

“The Commission will consider all of the options available under Part 4A of the Commerce Act, including control of an electricity lines business, if price increases cannot be justified,” she added.

“An investigation could also result in a settlement with the lines business that may involve setting a new pricing regime if the Commission was satisfied that some or all of the proposed price increases were justified.”

Ms Rebstock said the purpose of the targeted control regime is to promote the efficient operation of markets directly related to electricity distribution and transmission services through targeted control for the long-term benefit of consumers.

“The regime is designed to ensure that suppliers are limited in their ability to extract excessive profits, face strong incentives to improve efficiency and provide services at a quality that reflects consumer demands, and share the benefits of efficiency gains with consumers, including through lower prices,” said Ms Rebstock.