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Govt establishing electricity governance body

Govt ready to take on electricity governance responsibilities

The Government is ready to establish a new governance body for the electricity industry, says Energy Minister Pete Hodgson.

Mr Hodgson said it was clear today that the industry's attempt to reach agreement on a new self-governance structure had stalled after more than two years of intense effort.

"The referendum results announced today show that the proposed self-governance arrangements do not have enough support from the industry and consumers to proceed," Mr Hodgson said.

"The alternative has always been for the Government to appoint a board to govern the electricity industry. Preparations to establish this body began last month when it appeared likely the industry's efforts would fail. I will be announcing key decisions about it next week."

Mr Hodgson said he was disappointed that the industry had been unable to reach agreement after such a lengthy process.

"Many people have invested considerable time, energy, expertise and funds in this process and it is a pity it has not ended successfully. It has, however, completed significant technical work on market rules that will underpin further changes. "I thank David Caygill, in particular, for his strenuous attempts to lead the process to a successful conclusion. He brought considerable skill and commitment to a large, complex and difficult task."

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