MINISTRY OF CONSUMER AFFAIRS REPORT HAS DISTURBING CONNOTATIONS

"The Ministry of Consumer Affairs report identifying serious shortcomings with the retail electricity distribution sector's treatment of domestic consumers is disturbing," said Max Bradford, Minister of Energy and MP for Rotorua.

Mr Bradford was commenting on the report issued yesterday following a lengthy investigation of the 36 power companies around New Zealand , in which companies were ranked in regard to their performance against a "good" electricity supply contract for domestic consumers.

"Domestic consumers have been at the bottom of the food chain when getting the benefit of electricity deregulation, and this report buttresses that view. I am particularly concerned that the company servicing my own area, Trustpower, is ranked 30th of 36," said Mr Bradford.

"Having said this, I am pleased ESANZ, the industry body for the companies, recognises the problems and will participate in various initiatives to ensure consumers get a better break from power companies.

"In the end though, what will produce that better break is better competition. Domestic consumers can't shop around for the supply of electricity and we need to harness new technology more effectively so competition for households can develop quickly.

"There is considerable natural monopoly element in the supply of electricity at the retail level and this needs to be broken down for the benefit of domestic as well as commercial consumers. I intend to make this something of a personal challenge as the new Minister of Energy," Mr Bradford said.