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A Useful Analysis Of Electricity Line Companies

Useful analysis of electricity line companies from Ernst and Young

The Ernst and Young analysis of electricity distribution companies released today underscores both the failure of the previous Government's electricity reforms and the need for an inquiry into the electricity sector, says Minister of Energy Pete Hodgson.

"This is an annual analysis that has some credibility," Mr Hodgson said. "It shows there are gains to be made both in price and reliability.

"The report covers only the distribution sector. No doubt a study covering the rest of the electricity industry would be even more instructive. Ernst and Young themselves suggest that significant efficiency gains are feasible in other areas.

"This Government has the unenviable task of dealing with the shambles created in the electricity sector by its predecessor. We will be announcing the details of our forthcoming inquiry shortly."

Mr Hodgson congratulated his local lines company, Dunedin Electricity, for leading Ernst and Young's line business performance index for the third year in a row.

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