BOP Electricity in Commission's sights

By Phil Boeyen, ShareChat Business News Editor

Tuesday 8th January 2002

The Commerce Commission is taking court action against Bay of Plenty Electricity, alleging it is using a dominant position in the market to restrict access by competitors.

The Commission alleges that the company has been refusing to enter into metering services agreements and grant meter access to other electricity retailers wishing to sell power in the region since 1999.

"The Commission's action has been filed in the Wellington High Court and documents were today served on Bay of Plenty Electricity," the Commission says.

"If the Court finds that Bay of Plenty Electricity breached the Act then the court can impose a wide range of orders including injunctions and can impose penalties of up to $10 million."

Section 36 of the Commerce Act prohibits anyone with a substantial degree of power in a market from taking advantage of that power for such purposes.

Todd Energy holds a controlling interest in BOP Electricity, which is also a joint venture player in the FreshStart energy business.

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