The employment spat between Telecom and its engineers has taken a new turn.

The Commerce Commission is probing loyalty offers made by the company's wholesale business unit.

Profits at New Zealand's largest energy distributor, Vector, have risen 16.3 per cent, but the recession means growth in new connections has slowed and volumes are down.

Telecom has this morning reported a 43.9 per cent fall in full year net profit to $398 million.