Hon Max Bradford, Minster of Energy

"I fully support my colleague Hon Robyn McDonald, Minister of Consumer Affairs, that Simon Moutter has missed the point that domestic consumers have not received the benefits of the Government's electricity reforms," Minister of Energy, Max Bradford said today.

Mr Bradford was commenting on a press release by Mr Moutter, chief executive of Powerco, in which Moutter claimed the Government needed to reduce its costs if electricity prices are to be reduced for residential customers.

"Over the past few years the Government's energy reforms have delivered significant benefits to the wholesale consumers of electricity, predominantly retail supply companies.

"ECNZ has been split into competing generators and generation costs continue to fall as competition enforces cost disciplines on the SOEs.

"The wholesale electricity market has been introduced and is delivering more competitive prices on the spot electricity market. This should be reflected, over time, in longer-term contract prices," said Mr Bradford.

"The reforms have seen a reduction in the costs of generation. Since 1989 the average wholesale price of electricity, in real terms, has dropped by 16.9 percent. Mr Moutter's argument that because 60 - 70 percent of the cost of electricity delivered into the home is sourced from government owned SOEs is irrelevant to the need for every business in the electricity sector to play its part in establishing more competitive prices for household consumers. That includes Mr Moutter's company just as much as it does for ECNZ.

"It is entirely reasonable that retail consumers expect a better deal," Mr Bradford said.

"I totally endorse Mr Matheson's view that having a choice of supplier will put pressure on prices to domestic consumers.

"I am looking at ways the Coalition Government can promote a rapid development and introduction of metering options which will allow domestic consumers choice of supplier. The speedy adoption of these new technologies is an important key to consumers being able to participate in the benefits of the electricity reforms."