1 Nov 2008

Gas pipeline companies told to cut prices again

9:23 am on 1 November 2008

New Zealand's two leading gas pipeline companies have been told to cut their prices for a second time.

The Commerce Commision has told Powerco to lower average prices by 11.1% and Vector by 3.7%, and hold them constant to mid-2012.

The commission says when combined with an earlier price order, prices will have fallen 30% for Powerco and 22% for Vector.

It says the benefit must be passed on to the consumer, not retained by the companies that use the pipes to supply gas to customers.

The commission says there was some concern about this during the last price order.