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California Here We Come

New Zealand's long term outlook for security of electricity supply could be severely compromised by Minister Pete Hodgson, ACT Environment Spokesman Gerry Eckhoff says.

"After 18 months in office Pete Hodgson and colleagues seem to behave like they know more about the industry than the industry itself.

"The proposed efficient gas fired power station at Huntly should be entirely a decision for Genesis Energy to make without political interference. If the Government was prepared to sell Genesis then the company would be free to make its own decisions, based on commercial logic and free from meddling.

"I shudder to think of the implication of evoking the Electricity Governance Board on the industry. California here we come ' with the prospect of all the disruptions that area has suffered due to state directives on pricing.

"Meridian Energy is proposing a nearly $1 billion major generation platform in the lower Waitaki, with significant benefit for irrigation. One can only assume Meridian have done their homework and projected the future needs ' as indeed would have Genesis. Will the Government interfere with Meridian's judgement also. Sale of both these companies would allow proper commercial decisions benefiting the country to be made.

"This sort of political interference in an essential industry bodes ill for the future," Gerry Eckhoff said.

Ends


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