Vector acknowledges the release of the Commerce Commission's determination of the cost of capital for suppliers of gas distribution and gas transmission services.

The paper outlines the Weighted Average Cost of Capital (WACC) that will be used to set prices for our Gas Pipeline Businesses for the regulatory period 1 July 2012 to 30 September 2016.

The WACC the Commission plans to use for our gas transmission and gas distribution businesses is 7.85%*.

Vector believes this rate does not provide a commercially realistic return, having regard to the global financial crisis, ongoing market volatility and the long term nature of investment in network infrastructure.

The Commission's decision reinforces the importance of Vector's current merits appeal against the Commission's decisions impacting our electricity distribution, gas distribution and gas transmission businesses. These appeal rights are provided for under the Commerce Act.

* 7.85% is the 75th percentile estimate of Vanilla WACC (pre-tax) that will be used for the determination of the default price-quality path.

ENDS

distribué par

Ce noodl a été diffusé par Vector Limited et initialement mise en ligne sur le site http://www.vector.co.nz. La version originale est disponible ici.

Ce noodl a été distribué par noodls dans son format d'origine et sans modification sur 2012-01-18 22:29:10 PM et restera accessible depuis ce lien permanent.

Cette annonce est protégée par les règles du droit d'auteur et toute autre loi applicable, et son propriétaire est seul responsable de sa véracité et de son originalité.