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Government Policy Statement needed to solve pricing drama

The release today of the Electricity Authority’s report on transmission pricing methodology (TPM) confirms Vector’s firm view that a Government Policy Statement is needed to shape a transmission pricing regime that is fair for all New Zealanders.

Vector’s Group CEO Simon Mackenzie says the EA’s draft decision has far-reaching implications into the government’s priority objective of increasing energy affordability, particularly for consumers in energy hardship – a clear focus of the Electricity Price Review (EPR).

“We can’t reconcile how remote electricity generators should pay even less overall to get their product to market, pushing more of the total cost onto consumers,” Simon said.

“Our position remains that transmission costs need to be equitable between customers and generators, and it is unrealistic at this point to expect that the Electricity Authority can achieve an outcome that is fair for consumers without policy guidance by way of a Government Policy Statement.”

Vector notes that the Electricity Authority has already taken close to a decade to get to this point on transmission pricing, which highlights both the complexity of the issue and the diverse views of industry participants.

The Auckland-based electricity lines company - which is 75.1% community trust owned - looks forward to reviewing the EPR panel’s official recommendations on transmission pricing methodology when their final report is released.


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