Media statement
For immediate release
Tuesday, 5 December 2006
United Future would reposition Transpower
United Future energy spokesperson, Gordon Copeland MP, today reiterated his party’s policy, which would see Transpower
converted from a State Owned Enterprise to a Crown owned public utility.
“We believe that the expansion of the national grid should be funded entirely by the Crown through low interest
infrastructure bonds.
"The goal should then be to both upgrade and operate the national electricity grid on an inter-generational basis at the
lowest long-term cost to consumers.
“It is the nature of an electricity grid when constructed to last for forty or more years. Accordingly in our view it
makes sense to spread the cost of any upgrade, which is the interest on the debt and the repayment of the principal,
over a term of at least 35 years.
“It makes no sense whatever to lumber those kinds of costs on present electricity users. A grid upgrade is always
futuristic, anticipating increased demand in the years ahead and the costs should be apportioned having regard to that
reality.
“United Future also believes that present government’s policy which endeavours to earn a return on capital through
Transpower is wrong. Rather we believe that, like roading, the national grid should be operated on a cost recovery
basis.”
“The Crown does not seek a return on capital from the national highway system and nor should it from the national
electricity distribution system," said Mr Copeland.
ENDS