😓 The Reality of Building in Auckland: When Infrastructure Monopolies Hold All the Cards
Business Desk has more on Vector’s response and the Commerce Commission findings about their “unfair contract terms”, it’s infuriating but not surprising for me.
Why?
Commerce Commission found Vector’s contracts were “likely to create a significant imbalance” and cause “detriment to customers.”
The Problem:
• Vector controls Auckland’s electricity network – there’s literally nowhere else to go
• Small developers like me naively signed away our Fair Trading Act rights (sections 9, 12A, 13, 14)
• Most mums and dads building homes probably did the same without realising
• Commerce Commission’s “enforcement”? A strongly worded letter. That’s it.
The Real Impact:
New connections are profitable, not just paying a capital contribution for growth but by taking a big amount from the installation work (trenching, project management, etc). Did you know that their project management charge is more than a site manager would earn in a month!
The end point is that the real costs for infrastructure contributions tcan equal a property’s land value.
And we have the government focusing on land supply… what about better infrastructure procurement… not just cost allocation …. PROCUREMENT and EXCELLENCE in DELIVERY… let’s push and pressure for best practice… not just gouge for more cash to maintain our inefficiency.
It’s not really the land cost anymore, it’s monopoly utilities and infrastructure providers who can set terms and prices with impunity. An affordable house can pay the same connection fee as expensive developments, making affordable housing unviable.
Break up these monopolies – give us competition!
Get better procurement,ent terms (their inpi]ut costs are their own… not market based).
Give us real protection under the Fair Trading Act
Stop letting network companies contract out of consumer law.
Our small developer network is trying to spread awareness and give others confidence to push back.
But when Commerce Commission treats complaints about billion-dollar monopolies so lightly we’re fighting an uphill battle.
The housing crisis isn’t just about land supply – it’s about infrastructure cartels that can charge what they like while ordinary Kiwis foot the bill.
