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Urgency Needed On Electricity Rules

2 May 2002

Business NZ welcomes the rejection of the proposed electricity industry governance rules.

Chief Executive Simon Carlaw says the Commerce Commission was right to reject the first set of rules proposed for governance of the electricity industry because they gave too much power to the few large generator-retailers.

"Giving a small number of companies veto power over the other players in the market would not have helped get prices down," Mr Carlaw said. "There's already an imbalance of power in the market and the proposed rules would have entrenched it.

"Amendments are required to ensure that the needs of consumers aren't ignored."

But Mr Carlaw said time was ticking by and there was a pressing need for agreement to be reached on a way forward before the country gets caught up in winter price hikes.

"Electricity prices are already mounting. All parties involved in formulating the new rules need to approach their task with the greatest urgency."

Ends

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