Media statement Thursday, July 5th, 2007

Electricity Commission sign off on pylon plan welcome

The Electricity Commission's decision to approve the new transmission line into Auckland today will heighten security of power supply for Auckland and is another welcome step, says Alasdair Thompson chief executive of the Employers & Manufacturers Association (Northern).

"But we are concerned other alternatives were not looked at," Mr Thompson said.

"The Otahuhu C plant proposed by Contact and the Genesis power station in Rodney will be built over the next decade and could delay the need for the new large transmission lines for several years.

"However power from renewable generation resources necessitates the new high voltage lines, as well as to bolster competition.

"We will need to keep watch on Transpower's charges for the power transmitted on the new line too, to make sure Aucklanders are not exploited.

"As a monopoly Transpower may want to charge for the electricity as though all the capacity on the new lines were fully utilized, but it won't be for many years, and their charges initially should reflect the partial deployment of the asset."

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