Enhanced electricity supply certainty

11 September 2002

Media Release

Enhanced electricity supply certainty and price competitiveness…..

These are the two key outcomes that Auckland businesses would like to see from the Vector purchase of the line company United Networks.

Michael Barnett, Chief Executive of the Auckland Chamber of Commerce, said he acknowledged that the deal was still subject to shareholder approval.

“A Vector purchase of a lines company is a logical initiative that will be widely welcomed by the business community as it should – if managed professionally - give increased certainty of supply to customers and will hopefully result in improved efficiency and lower prices,” said Mr Barnett.

“It is all about getting to a point to be able to control the chain of supply from the point of generation to distribution to customers. This is a step towards Aucklanders – through the Energy Consumer Trust – being able to have better control over their electricity supply.”

Mr Barnett said the prospect of the deal was not just good news for Aucklanders in terms of getting pay-outs from enhanced dividends over time, but of constructing an environment in which Auckland electricity prices, including line charges, remain not just competitive to elsewhere in New Zealand but to other international cities in this part of the world.

ENDS

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