The Commerce Commission will continue to consider the competion issues. Photo / File
The Commerce Commission has given itself an extra two months to consider competition issues raised by Vector's proposed purchase of Contact Energy's gas metering business, following submissions claiming the move will create a "virtual monopoly" in gas metering in Auckland.
While Vector's application for clearance of the purchase by the
competition watchdog attracted only two submissions, the commission has extended its original decision date of Dec. 21 last year to Feb. 22 "to allow further detailed enquiry and analysis," a spokesperson said.
The $63 million transaction was announced last October and attracted opposition from the Southern Cross Healthcare group and an Auckland gas industry consultancy, Energy Select.
Both argued Vector's application underplayed or mis-stated how difficult it would be for competitors to establish competitive gas meter service provision and decried the loss of Contact as the only non-network owner to provide gas meters.
"Replacement of existing assets is already almost non-existent and allowing one participant to have 76 per cent of the market (nationwide) can only further lessen competition," said Energy Select's Shaun Hayward in a submission published on the commission's website. As a retail business rather than a monopoly network owner, Contact's ownership of gas meters "creates 'some' competitive tension."
