Proposed Rulebook Entrenches Supply Side Dominance

Tuesday, 11 December 2001

Proposed Rulebook Entrenches Supply Side Dominance Of The Electricity Industry

“After 12 months of attempting to put together a new combined rulebook for the electricity industry, the proposed rulebook submitted by the Electricity Governance Establishment Committee (EGEC) for authorisation by the Commerce Commission preserves the supply side dominance of the rule making processes said the Chairman of the Major Electricity Users Group (MEUG), Mr Terrence Currie.

“Consumer representatives have opposed the decision right processes being captured by the supply side, but we have simply been out voted. The Commerce Commission though should take a much less partisan approach and will, we believe, conclude that consumers and suppliers, not just suppliers, should share the governance of mandatory rules that ultimately affect all consumers.

“The Governments silence on this matter is of concern because it is being used by the supply side to indicate Government agreement. We understand that the Government wants only to know the outcomes set out in the Government Policy Statement in December 2000 are met, without knowing the detailed rule and rule making processes. We believe this is high risk to consumers and the achievement of the Governments objectives. Mr Currie concluded “we’ve had several decades of the supply side setting the rules, and last winter showed several shortcomings – only when all consumers, small, large and rural are represented will development of mandatory rules in the electricity sector begin to address these gaps.

Ends

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