Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Self-governance arrangements take a backward step

Self-governance arrangements in the electricity sector take a backward step

”The interests of the economy and end consumers of electricity have taken a backward step following today’s announcement that the Commerce Commission has decided to authorise the proposed new arrangements for the self-governance and operation of the electricity industry” according to Terrence Currie Chairman of the Major Electricity Users Group. Today’s authorisation covers the establishment of an Electricity Governance Board and its new rulebook.

He said “all consumers’ will be concerned that the Commission has done a complete turn around from its earlier draft decision where authorisation was not supported. Further more we are not privy to the Commission’s reassessment of the benefits and costs to the economy and will not have that information for several weeks. The imposition of four conditions by the Commission and its limit on the life of the authorisation do not, in our view, bridge the gap between the Commission’s draft determination that deemed the detriments of the arrangements outweighed the benefits.”

“This decision to authorise appears to be an enormous gamble on the part of the Commission but unfortunately it has placed the interests of consumers at risk.”
“Apart from the supply side of the industry, namely the generators and their retailing arms, there has been such widespread opposition to the proposed arrangements that one finds it difficult to understand how or why the Commission believes that net benefits will accrue to the public”, commented Mr Currie.

“MEUG and other end consumers have supported the principle of self-regulation as much as possible and have actively participated in the existing authorised arrangement for deciding common quality and security issues, ie the Multi-lateral Agreement on Common Quality Standards (MACQS). That arrangement has an appropriate balance of supplier and consumer interests and safeguards, whereas the rulebook proposed by the EGBL does not.”

Mr Currie concluded, “This saga is not over yet. At every stage we will be seeking to ensure the domination of the governance arrangements by existing suppliers is removed and that end consumers and suppliers that do not wish to be a part of such a biased rulebook will have the opportunity to buy and sell electricity through other arrangements.”

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news