COOK STRAIT CABLE AGREEMENT GOOD NEWS FOR CONSUMERSState Owned Enterprises
The agreement between Transpower and ECNZ on transmitting electricity across Cook Strait is good news for South Island consumers, the Minister of State Owned Enterprises Jenny Shipley and the Minister of Energy Max Bradford said today.
Mrs Shipley says that as a South Island MP she has been acutely aware of the particular concerns of South Island consumers, that Transpowers new pricing regime may have seen a signficant difference between North and South Island power prices.
I am pleased that this agreement between Transpower and ECNZ means no consumers will be required to meet any additional transmission costs, Mrs Shipley said.
Mrs Shipley and Mr Bradford say it is pleasing to see the two State Owned Enterprises negotiate a solution without the need for Government intervention.
Mr Bradford says the agreement will be checked against the principles for electricity transmission contained in the Statement of the Government Economic Policy: Electricity Transmission issued under section 26 of the Commerce Act.
"It is important that the agreement results in transmission pricing which sends the right signals to investors in the electricity sector, encourages energy efficiency and is good for the economy as a whole," Mr Bradford said.