Friday 22 February 2019
First Gas accepts High Court Ruling
First Gas Limited accepts the High Court’s ruling for costs relating to an acquisition the Commerce Commission said was
likely to reduce competition.
First Gas has agreed to pay $3.4 million.
We made an error by not seeking Commerce Commission approval in the purchase of another gas infrastructure provider – it
was an expensive oversight that could have prevented any breach of competition laws.
First Gas has co-operated with the Commission’s investigations, accepted the Commission’s conclusions and agreed the
financial penalty.
The case relates to the December 2016, acquisition of GasNet Limited’s gas distribution assets in the Papamoa area of
the Bay of Plenty.
At the time, First Gas believed the transaction complied with the relevant regulations but now accepts it had not fully
considered the possible impact on other developers laying gas distribution networks, and it should have sought
clarification from the Commission.
Since buying its gas distribution networks from Vector in 2016, First Gas has encouraged distribution connections by
significantly reducing the upfront capital contribution required of developers to install new gas pipelines. We will
continue to ensure development charges are set at a level that encourages new gas connections and to promote natural
gas.