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


EG Board announcement unhelpful and unwelcome


Thursday, 27th March 2003. For Immediate release.
Media release by the Major Electricity Users’ Group (MEUG)

Electricity Governance Board announcement unhelpful and unwelcome when we have an electricity crisis

”The decision by the Electricity Governance Establishment Committee (EGEC) to force a vote on the proposed electricity market Rulebook is unhelpful and unwelcome when we have an electricity crisis,” said Ralph Matthes, Executive Director of MEUG.

“Here we have a generator dominated organisation trying to further entrench its dominance of the electricity market when New Zealand is suffering an electricity crisis that generators have contributed to. This is why MEUG has continued to oppose the EGEC process and will continue to do so. It is not in the interests of any New Zealand consumer that the Rulebook be implemented.

“This referendum is an unnecessary distraction from the real issues underlying the current electricity crisis – the lack of proper planning to ensure thermal generation through this winter, insufficient new generation capacity in the next 2-3 years and possible price gouging by generators.

“It is a pity some of the $7 million spent on the tortuous EGEC process over the last few years was not directed at these more productive pursuits and mitigating the market power of generators.

“MEUG welcomes the Government’s announcement this week to review the electricity market structure. Also the Rulebook will need to go back to the Commerce Commission for another round of consultation on rule changes since last December. The referendum should be postponed until those processes are completed.

“In the interim the best governance arrangement is through the Grid Security Committee (GSC) that all parties have agreed is best placed to manage the current crisis through a Winter Power Task Force. The GSC is the preferred model for any pan-industry Rulebook and governance arrangement, not the EGEC model.

“MEUG estimates the country is already losing over $2 million of manufacturing sales per week due to this power crisis. Lets focus on the power crisis and not be diverted by the EGEC Rulebook,” concluded Mr Matthes.

Notes for the media: Mr Matthes is one of two CC93 (Consumer Coalition on Energy) representatives on EGEC.

The Grid Security Committee is the governance entity for MACQS, an arrangement authorised by the Commerce Commission. The GSC includes 3 consumer representatives for the household, commercial and industrial sectors. MEUG represents the industrial sector.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Media Mega Merger: StuffMe Hearing Argues Over Moveable Feast

New Zealand's two largest news publishers are appealing against the Commerce Commission's rejection of the proposal to merge their operations. More>>


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>


Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>


Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>