Electricity report a good first step

Media release
12 August 2009

Electricity report a good first step towards more competitive prices

Business NZ has welcomed a draft report on the electricity market by the Electricity Technical Advisory Group, saying it is a good first step towards achieving more competitive electricity prices.

Business NZ Chief Executive Phil O’Reilly says over recent years the electricity market has drifted into a fog of ill-focused overlapping regulations and governance arrangements, and the review is the opportunity to refocus it.

“Businesses and families are no longer certain that the electricity market is designed or governed in a way that will reliably deliver competitive prices. Confidence needs to be restored.

“We are looking to this review to provide some evidence that appropriate governance structures and rules will be put in place.

“Managing dry year risk is a crucial part of the review. Electricity companies should bear responsibility for managing that risk, and it should not be socialised across all consumers.

“The idea of a consumer rebate for conserving power has received a lot of interest. Business NZ will look closely at this and other elements of the report as they relate to managing dry year risk.

“We will also be assessing the governance proposals against the analysis contained in the recent Business NZ/LECG report.

“To build a job-rich and export-rich economy, and to be regarded as an attractive place to invest, New Zealand needs a flexible, adaptable electricity market capable of delivering reliable, continuous electricity at competitive prices.

“This draft report, with submissions from the public to come, provides a good step towards those outcomes and Business NZ will make a detailed submission after consulting our members.”

ENDS

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