Tuesday 12 March 2002
Powerco calls for consistent regulation
Powerco today called for consistent regulation to be applied across the whole electricity sector – extending beyond just
distribution companies and taking in retailers and generators as well.
The call was part of the Power Plan, Powerco’s blueprint for competition and sustainable performance in the electricity
sector.
Launching the Power Plan at the Utilicon Conference in Auckland today, Powerco Chief Executive Steven Boulton said it
was clear that consumers were not happy with the performance of the sector.
“Consumers are unsure whether the regulatory regime is delivering value. The Power Plan is designed to change that.
“Recent events, including calls last week by Energy Minister Pete Hodgson for retailers to improve the competition in
their sector, only serve to reinforce a growing concern that consumers are not getting a fair go.
“Powerco wants to see more transparency, and poor performance targeted through greater application of regulatory powers
– applied across the sector – to resolve these problems.
“To this end we have developed the Power Plan, a set of achievable and realistic steps to improve competition and
performance across the entire electricity industry,” Mr Boulton said.
The four steps outlined in the Power Plan are:
1. Apply consistent regulatory principles across the whole electricity sector
2. Develop an agreed set of parameters for determining good value and performance in the electricity sector
3. Promote and publish performance outcomes of companies
4. Define and implement a clear and effective process for targeting poor performance
“This is a critical time for our industry and it is crucial to get the regulatory balance right. This is an opportunity
for New Zealand to show international leadership in constructing a utility regulatory model that works.
“We are not asking for more regulation – nor are we asking to be exempt from regulation. We simply ask that regulation
be applied consistently across the whole sector, in order to ensure that consumers, electricity companies and other
stakeholders alike get a fair deal.
“Powerco is committed to assisting in any way we can to help shape change, to ensure it creates a better environment in
the future,” said Mr Boulton.
ENDS