Hon Gerry Brownlee
Minister of Energy and Resources
10 May 2009 Media Statement

New policy direction for Electricity Commission

Energy and Resources Minister Gerry Brownlee today released a revised policy direction for the Electricity Commission.

The Government Policy Statement (GPS) sets out objectives and outcomes expected from the Commission.

“The changes are designed to reflect the government’s policies, and particularly its desire to accelerate prudent grid investment,” Mr Brownlee said.

“An important feature of the GPS is bringing forward the section that emphasises security of supply."

“The government believes that disentangling the regulatory overlap between the Electricity Commission, Transpower and the Commerce Commission is important," he said.

“Getting that right will take some time. A Ministerial review is already under way. The government is now taking this interim step to ensure transmission investment can happen more quickly,” Mr Brownlee said.

The GPS introduces a streamlined, simplified process for transmission investments under $20 million in value.

“This will save time and cost, and speed up important upgrade work,” Mr Brownlee said.

“The regulatory function of the Electricity Commission was identified at the Jobs Summit by many sectors as delaying transmission investment and being a blockage to both infrastructure investment and expansion of jobs.

Other changes to the GPS reflect the government’s intention to review the New Zealand Energy Strategy, and assess any duplication with the New Zealand Energy and Efficiency Conservation Strategy.

The Electricity Act requires the Minister of Energy to consult with the Electricity Commission on the GPS. This has occurred in this case.

Information on the revised GPS for Electricity Governance is available at.
www.med.govt.nz/electricity/gps/

ENDS

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