Energy
Minister Pete Hodgson has said that the decision by NGC to
sell its 290,000 electricity consumers to Genesis had its
origins in the forced split of line and energy companies two
and a half years ago.
"What we are seeing is a significant
shakedown after electricity companies bought and sold one
another's customers in the wake of the 1999 Max Bradford
reforms.
"At that time it was widely considered that the
sale and purchase of customers forced by the previous
Government's legislation was taking place at hugely inflated
prices. This year's dry winter has caused spot prices to
rise and that, combined with On-Energy's surprising exposure
to those prices, has triggered the inevitable shakedown,
presumably for a more realistic consideration than in
1999.
"It may not be the last such reconfiguration of its
type."
The sale will be subject to Commerce Commission
scrutiny to ensure that it does not substantially lessen
competition, under the newly revised Commerce
Act.
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