INDEPENDENT NEWS

Unison Networks Ltd v Commerce Commission

Published: Mon 10 Sep 2007 11:16 AM
Supreme Court of New Zealand
10 September 2007
Unison Networks Ltd v Commerce Commission SC 12/2007 [2007] NZSC 74
PRESS SUMMARY
This summary is provided to assist in the understanding of the Court’s judgment. It does not comprise part of the reasons for that judgment. The full judgment with reasons is the only authoritative document. The full text of the judgment and reasons can be found at www.courtsofnz.govt.nz.
Supreme Court judgement
The Supreme Court has dismissed an appeal by Unison Networks Ltd which challenged the validity of decisions taken by the Commerce Commission in 2003 and 2004 as regulator of electricity lines businesses.
Legislation passed in 2001 required the Commerce Commission to put in place a regime for regulation of the 29 regional electricity lines businesses in New Zealand which operate as regional monopolies. The regulatory scheme provides a targeted regime for the imposition of price control on those businesses which the Commission decides require control.
The scheme provides for the Commission to set “thresholds” as part of a process for identifying any such businesses. If a lines business, in the course of its trading, breaches any threshold, the Commission must inquire into and decide whether price control should be imposed on it.
The Commission’s initial price threshold set in 2003 required that lines businesses make no increases in their price levels for a period of 20 months.
Its second price threshold allowed price movements within a stipulated price path. Unison challenged the lawfulness of both thresholds in judicial review proceedings.
The Court of Appeal decided that the first threshold was unlawful. That part of the decision was challenged by the Commission and has been overruled by the Supreme Court. The Supreme Court upheld the Court of Appeal’s decision that the second threshold was lawful. The overall effect of these findings is that Unison’s appeal was dismissed. Unison has been ordered to pay $25,000 costs to the Commerce Commission.
ENDS

Next in New Zealand politics

David Clark resigns as Health Minister
By: New Zealand Government
Green Party Proposes Transformational Poverty Action Plan
By: Green Party
New protection for dolphins
By: New Zealand Government
Auckland water consent referred to Board of Inquiry
By: New Zealand Government
A New Firearms System Focused On Safety
By: New Zealand Government
Building a stronger health and disability system
By: New Zealand Government
Todd Muller Announces Caucus Reshuffle
By: New Zealand National Party
Winston Peters on EU travel: 'We're not going to compromise our country's health'
By: RNZ
Infrastructure Investment To Create Jobs, Kick-start COVID Rebuild
By: New Zealand Government
Government Strengthens Managed Isolation System
By: New Zealand Government
ACT Announces List For 2020 General Election
By: ACT New Zealand
New Zealand To Host Virtual APEC In 2021
By: New Zealand Government
Clark’s Resignation Was Too Little, Too Late
By: New Zealand National Party
Taxpayer Victory! David Clark Resigns
By: New Zealand Taxpayers' Union
PM Jacinda Ardern on David Clark's resignation as Health Minister: 'It is one I agree with'
By: RNZ
View as: DESKTOP | MOBILE © Scoop Media