INDEPENDENT NEWS

Government decision on price control “ill-advised”

Published: Thu 28 Jul 2005 02:55 PM
Thursday, July 28, 2005
Government decision on price control “ill-advised”
Powerco Chief Executive Steven Boulton says that he believes the Government’s decision to accept a Commerce Commission recommendation to impose price control on Vector and Powerco is ill-advised.
Mr Boulton said that Powerco was currently challenging the Commission’s recommendation through Judicial Review in the High Court.
“Powerco believes the Commission’s decision is legally flawed.
“If allowed to proceed, regulation will have a serious negative impact on both the energy sector and on the national economy,” said Mr Boulton.
“Many of the Government’s own energy objectives, and valuable opportunities to diversify New Zealand’s energy mix, are compromised by this recommendation. Further, the Minister’s decision is contrary to the advice of Treasury which recommended that price control not be applied, as there was not a sufficient economic case,” he said.
“We are disappointed that the Government has decided to support the Commission’s recommendation, particularly in view of the fact that that recommendation is presently the subject of a judicial review application.”
Mr Boulton said he would continue working on Powerco’s legal response and discussing the decision and its impact on Powerco in New Zealand with the relevant stakeholders.
ENDS

Next in Business, Science, and Tech

General Practices Begin Issuing Clause 14 Notices In Relation To The NZNO Primary Practice Pay Equity Claim
By: Genpro
Global Screen Industry Unites For Streaming Platform Regulation And Intellectual Property Protections
By: SPADA
View as: DESKTOP | MOBILE © Scoop Media