The Commerce Commission should act swiftly to capitalise on the High Court's findings in its favour on monopoly network pricing to deliver consumer benefits worth perhaps $750 million over the next six years, says Wellington barrister Stephen Franks.
"If the Commerce Commission picks up the baton thrown by the High Court, there could be a $150 million election year announcement of a reduction in cost to consumers," said Franks in blog comments on the High Court merits review of the commission's input methodologies for determining default price paths for monopoly networks.
"From 2015 to 2020, it could save up to $750 million."
Franks represented the Major Electricity Users Group in the lengthy hearings that led eventually to Justice Denis Clifford's 661 page findings, which Franks says the government should be grateful for.
His comments coincide with a credit rating downgrade of gas and electricity network owner Vector, which led the charge on the merits review, arguing the commission's inputs for determining monopoly network pricing was flawed, would reduce necessary investment in essential industry networks, and penalises network owners for efficient operation.