Electricity changes a major step forward

Media release

9 December 2009

Electricity changes a major step forward

Changes to the electricity market announced today are a major step forward, says Business NZ.

Chief Executive Phil O’Reilly says ongoing price increases and uncertain electricity supply have been issues for business for years, and it is good to see action being taken to address the key issues. 

“We want to see a framework where generators and retailers compete vigorously and have incentives to properly manage their dry-year risk.

“Market features such as the reserve energy scheme have hindered, not helped achieving security.

“Abolishing the reserve energy scheme, addressing the absence of regional competition, getting more transparent pricing and compensating customers for conserving energy are steps towards a more effective and efficient system.”

Mr O’Reilly said more information was needed before a judgment could be made on the overall changes, including the proposal for mandatory hedging, but the steps so far outlined were in the right direction.

“Business NZ looks forward to engaging with the Government in this important area as the planning is further fleshed out.”

ends

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