Powerco calls for consistent regulation

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

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