Commerce Commission

Following complaints about high fuel prices in Thames, we began making enquiries. We are pleased to see that prices there have since fallen substantially and are now closer to those in nearby locations. Prior to those declines, higher prices were costing motorists in the order of $200,000 more a month than if prices had been in line with nearby Ngatea. We sought further information to help us understand the cause of the unusually high prices. The evidence we obtained confirms that the underlying costs to supply fuel to Thames are not materially higher than other nearby locations. Instead, the high localised pricing was the result of a lack of effective competition – brought about by several factors. One factor is that some of the companies that supply the fuel sold in Thames link their wholesale prices directly to local retail prices, rather than basing them on their costs. This, combined with the fact that other independent stations in Thames chose to follow high prices up rather than competitively undercutting them, created an upwards pricing spiral to the detriment of motorists. We also consider that competition is not as strong as we would like it to be because a single fuel company accounts for a substantial proportion of fuel supplied to retail stations both within and near Thames. We will continue to monitor fuel prices, in Thames and elsewhere, where we have concerns that fuel prices look out of line compared to what we would expect in a competitive market.

We partnered with Consumer NZ and asked their expert testers to put a selection of WiFi routers through their paces – including models from broadband providers and retail brands. We found that some broadband companies now provide devices as good as off-the-shelf options and the testing can help consumers identify how well individual routers perform, what their unique features and functions are, and how easy they are to set up. “This work builds on the Commission's monitoring, including our RealSpeed report, which shows the importance of having a good in home set up to make the most of your broadband speeds,” says Tristan Gilbertson, Telecommunications Commissioner. “Your router is your gateway to the internet, and the better the router, the better the performance of your connectivity.” For detailed test results and a comprehensive buying guide, visit Consumer NZ's website.

The Commerce Commission has recently issued a warning to Dick Smith, for likely misleading consumers. Dick Smith’s website automatically signed customers up for a $149 membership subscription, by using a pre-selected tick box in shopping carts. The pre-selection of the “FIRST” membership was not obviously disclosed on Dick Smith’s website, which meant it was unclear to consumers that they were signing up to a subscription. Businesses have an obligation under the Fair Trading Act to not mislead consumers, including online shoppers. The Commission investigated allegations of misleading conduct under the Fair Trading Act following complaints from consumers that they were unknowingly supplied a 14-day free trial of the FIRST membership, which led to an ongoing payment obligation to pay $149 (annually) or $14.99 (monthly) once their trial period had ended. Read more in our media release here: https://ow.ly/xfmk50TVYH5

Members of our infrastructure regulation team got the opportunity to put on their high vis vests and hard hats yesterday as part of a site visit to Vector Limited, one of the electricity and gas businesses we regulate. The team got up close with some of the business’ core infrastructure, viewing the control room and Hobson and Wairau zone substations. Regular engagement with industry participants is an important part of our regulatory approach and we’d like to thank the team at Vector for showing us around.

We're looking to hear from market participants at our upcoming Energy Competition Task Force Q&A sessions. There are two sessions to choose from in November. Register below.

This Cyber Smart Week, we’re supporting CERT NZ to #StopTheScamathon   Visit https://lnkd.in/gNMScxDi to read their advice on how to be more secure online.

We are consulting on newly updated Broadband Marketing Guidelines to further strengthen the ability for Kiwis to compare and choose the best service for their needs. The Guidelines are being updated following a review of the original guidance issued in 2021, which shows a positive response from industry and an improvement in broadband marketing conduct across the board – particularly for Kiwis coming off copper, where complaints have dropped by 36%. “We’re pleased to see Kiwis are now getting more of the information they need to make informed purchasing decisions. In saying that, our review also identified opportunities for improvement in some areas to promote even better comparison and choice,” says Tristan Gilbertson, Telecommunications Commissioner. The revised Guidelines focus on clarifying broadband speed disclosures and standardising the grounds for an ‘exit right’ to prevent lock-in issues. They also propose providers give consumers at least 12 months usage and spend information. Consultation is open until 6 November 2024.

The Energy Competition Task Force work programme has been published. Head over to the Electricity Authority Te Mana Hiko website to take a closer look. 👇

Our people really enjoyed the opportunity to meet and engage with industry experts and leaders at this week’s Water New Zealand Conference and Expo. Our Chair, John Small, took the opportunity this morning to expand on how economic regulation can help the water sector in the years ahead, and our intent to create a regime that will flex, as appropriate, to ensure we get the best outcome for consumers.    Earlier in the week, our General Manager for Infrastructure Regulation, Andy Burgess, spoke alongside Taumata Arowai and Regional Councils on a panel focused on regulatory quality standards for water, before wrapping the day up with another panel appearance and Q&A session reflecting on the days’ key themes.   Meanwhile yesterday, our Implementation Director for Water, Charlotte Reed, spoke as part of a ‘Women in Water and their Allies’ panel. Along with her fellow panellists, Charlotte reiterated the importance of sharing stories and the inherent power of standing up and being seen - something that can inspire and empower others to see a future for themselves in the sector. 

The Grocery Commissioner wants to hear your thoughts on our Preliminary Issues Paper on the Wholesale Supply Inquiry. Read more here 👉 https://ow.ly/epG150TuOlf