Unison Networks Ltd v Commerce Commission

In Unison Networks Ltd v Commerce Commission, the Supreme Court of New Zealand considered the validity of price path thresholds set by the Commerce Commission under Part 4A of the Commerce Act 1986 for regulating large electricity lines businesses. Unison Networks Limited, an appellant, challenged the Commission's initial and revised thresholds as being set in breach of the Act's requirements. The central issue before the Court was whether the thresholds were unlawful. The Court found that the Commission had not exceeded its statutory powers in setting the thresholds. The Court concluded that thresholds need not screen for inefficiency or excess profitability, but rather must contribute in a rational way to the Commission's process. The initial threshold, which set a price freeze, and the revised threshold, which considered relative productivity and profitability, both contributed to the administration of the targeted control regime. The appeal by Unison was dismissed, and Unison was ordered to pay the Commission's costs of $25,000 plus reasonable disbursements.