Electricity Governance Arrangements a Challenge to Government
"The Commerce Commission's approval of electricity industry self-governance will provide a real challenge to the
Government, which must ensure that its full policy objectives are met." said Molly Melhuish, energy analyst, for the
Sustainable Energy Forum.
The approved electricity industry Rulebook specifically excludes public interest matters, except in a non-binding
foreword. It sets up Market Rules for the mutual benefit of wholesale market participants.
"Small consumers are represented mainly by the Major Electricity Users Group, and the large generator-retailer
companies, whose real interests are often contrary. The interests of energy efficiency and small renewable energy
businesses are ignored", she said.
Transpower's expert consultant, Professor Bill Hogan, wrote for Transpower's final submission:
"If industry decision-making is not inherently superior to that of a body having the responsibility, capability and
authority to support the public interest, then the whole theory of the Applicant's design crumbles. This is a radical
conclusion, fully justified by the record. It requires a correspondingly radical reorientation of oversight and decision
processes for this sector.
Need we say more? "
"The Sustainable Energy Forum agrees with these sentiments. The will come back to haunt the Government and the industry
before too long," concluded Mrs Melhuish.