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Bulletin

December 2019

Welcome from Adrienne Meikle

Kia ora tatou

Welcome to the December edition of Bulletin.

The weeks leading up to Christmas are always a busy time but this year has set a new level for the Commission with many of our very large projects coming to a conclusion in recent weeks.

One of these was our first market study. Earlier this month we delivered the final report on our study into the retail fuel sector making a number of recommendations to stimulate competition and benefit consumers. We consider that many fuel companies have been making persistently higher profits over the past decade than we would expect in a workably competitive market, meaning consumers are paying more than could be expected. You can read more about the study in this edition of Bulletin.

In electricity regulation we have completed the 5-yearly price-quality path resets for both Transpower and the distributors that are covered by regulation. We believe our final decisions in these areas strike a balance between minimising electricity distribution costs for consumers and ensuring a stable regulatory regime where companies have incentives to invest in their networks to maintain reliability and meet the long-term needs of their customers. The outcome for consumers in most areas will be a reduction in the distribution component of their electricity bills from April and you can read more about this below.

Read more

First market study completed into the retail fuel sector

On 5 December we released our final report into our first market study into the retail fuel sector.

The Government initiated the study after concerns about whether consumers were getting a fair deal at the pump.

Our study focused on assessing whether competition was working well for consumers and was the product of a year’s worth of work from Commission staff.

We would like to thank fuel industry participants, motoring and consumer groups and everyday consumers for their constructive engagement throughout the process.

Read more

Price-quality resets completed for Transpower and 15 local lines companies

In November we released our final decisions for our price-quality resets for Transpower and 15 of New Zealand’s local lines companies.

The resets, which come into effect in April next year for a period of five years, set out how much each monopoly company is allowed to earn from its customers and the minimum quality standards it must meet.

For the 15 local lines companies, our final decision balances the need to minimise electricity distribution costs for consumers, while ensuring a stable regulatory regime where lines companies have incentives to invest in their networks to maintain reliability and meet the long-term needs of their customers.

Read more

Consumer complaints to Commission leap 20%

Consumer complaints to the Commerce Commission increased more than 20% in the 2018/19 year, to nearly 9,000.

In November the Commission released a snapshot of the 8,964 consumer complaints it received from 1 July 2018 to 30 June 2019, including examples which are indicative of the complaints we received.

Consumer update

It has been a busy end to the year for our consumer team, with a range of enforcement outcomes.

On 10 December, Health supplements seller GO Healthy New Zealand Ltd was fined $337,500 for misleading consumers by claiming its supplements were “made in New Zealand”, when the key ingredients in the majority of its products were imported.

GO Healthy pleaded guilty to three charges under the Fair Trading Act which related to promotional advertising that appeared across a variety of media.

Read more

Recently released

First geographic areas identified for transition away from copper telco services

Campervan renters to be refunded over "$0 liability" damage cover

Fibre 100 broadband plans delivering great internet experience to customers in latest Measuring Broadband NZ results

Debt collector warned for likely harassment, coercion, misleading claims

Commission releases final report on Fonterra's 2019/20 Milk Price Manual

Refunds for Home Direct customers after first Unfair Contracts Term declaration

Upcoming dates

Submissions on Fibre input methodologies draft decision and determination due 28 January 2020

Submissions on broadcasting services revenue in Telecommunications Development Levy due 12 February 2020

You are receiving this email because you subscribed to Commerce Commission bulletins.

Our mailing address: Commerce Commission, 44 The Terrace, PO Box 2351, Wellington 6140, New Zealand. � 2015 Commerce Commission New Zealand.

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Bulletin

Welcome from Adrienne Meikle

First market study completed into the retail fuel sector

Price-quality resets completed for Transpower and 15 local lines companies

Consumer complaints to Commission leap 20%

Consumer update

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