Hon David Parker
Minister of Energy

26 October 2006

Updated policy statement on transmission released

Energy Minister David Parker today released an updated Government Policy Statement on Electricity Governance designed to improve the quality and timeliness of decision-making on transmission.

"A reliable grid is critical in achieving the government's goal of transforming the economy," David Parker said. "This policy statement is about reinforcing the need for security of supply, alongside environmental and price objectives."

The release follows consultation with the Electricity Commission on a draft statement released in August and consideration of comments by stakeholders.

The revised Government Policy Statement on Electricity is designed to:

- Emphasise the importance of security of supply in transmission, including in extreme events, by providing for diversity of supply routes, especially for large load centres like Auckland
- Ensure that the grid facilitates competition in generation and minimises transmission constraints
- Ensure that business and stakeholder confidence in security of supply is maintained during transmission upgrade processes
- Ensure that transmission planning supports the government’s goal of facilitating renewable energy
- Emphasise that, to the extent possible, grid upgrade plans should be as comprehensive as possible and should be considered in a wide framework

- Allow Transpower to recover the reasonable costs of acquiring land corridors in advance of approval of specific grid upgrade plans.

“I am also looking at the overall electricity market arrangements and propose to make improvements in conjunction with the development of the New Zealand Energy Strategy. A draft of the Strategy is expected in late November,” Mr Parker said.

ENDS

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