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

 

Power Distributors Welcome Govt Investment Boost

Electricity Networks Association

Media Release

For Immediate Release


8 August 2006


Power Distributors Welcome Government’s Investment Boost

Electricity distributors have today welcomed the Government policy statements on infrastructure.

“What we’re had up until now is a system that forces electricity line charges down in real terms. But it’s at a time when New Zealand’s networks need significant investment to cope with load growth and to replace ageing systems. A rethink has been desperately needed and I congratulate the Energy and Commerce Ministers on their decisiveness,” says Electricity Networks Association Chair Warren Moyes. “The announcements apply to a spectrum of industries, and it’s refreshing to see the essential nature of infrastructure investment being prioritised.”

“We see in these statements a new emphasis on ensuring that transmission and distribution facilities provide levels of security appropriate for a modern economy.”

Warren Moyes is also pleased that the announcements come ahead of the forthcoming National Energy Strategy exercise.

“There are other reforms that can be addressed now that the focus has shifted towards development. These include the creation of a realistic appeal system that will enable shortcomings in regulatory decisions to be sorted out.”

The Government’s statement made under section 26 of the Commerce Act could also be of great significance to the lines industry, the Association believes.

“While the Commerce Commission is normally tasked only to ‘have regard to’ such statements, the regulation of lines companies under Part 4A of the Act was a subsequent add-on, with many parallels with the regime handled by the Electricity Commission.

“I would expect the Commerce Commission to treat this Policy Statement in the same way that the Electricity Commission does, as a directive rather than a series of matters to be taken into account. Provision exists for the future transfer of the Part 4A work from the Commerce to the Electricity Commission. It would be anomalous if the Government Policy Statement had less bearing for one agency than it did for the other.”

“Overall, we applaud the Government’s call for a better regulatory environment, which will help provide the incentives and stability required to encourage investment in this critical infrastructure.”


ENDS

© 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>>

Elsewhere:


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>>

ALSO:


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>>

ALSO:

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>>