NEW ZEALAND FIRST PROMOTES ELECTRICITY REFORMS

NO PRIVATISATION
LOWER PRICES
The three-way split of ECNZ, continued Crown ownership of our electricity assets, and reform of the retail sector will promote competition and lower prices for consumers, Deputy Prime Minister and New Zealand First Leader Winston Peters said today.

"Splitting ECNZ into three Crown owned companies reduces the threat of privatisation. Leaving ECNZ like it is, is far more attractive to privatisation than a split. That's evidenced by those who argued for the status quo and the 40 per cent trade sale."

Mr Peters said the reforms announced today were something that previous Governments had been unable to achieve and were now made possible by New Zealand First.

"In the three-way split each Crown owned generator will need to compete strongly and will have neither the incentive, nor the ability to maintain higher-than-fair prices to electricity consumers.

"By keeping the assets in our hands and ensuring competition and no monopoly, prices to electricity consumers, householders and businesses will be dramatically reduced," Mr Peters said.

"In the retail sector, the reforms will prevent electricity retailers from frustrating competition and withholding the benefits of lower wholesale prices from consumers.

"This will be achieved by the separation of ownership of lines and energy businesses, ensuring better maintenance of power lines and elimination of cross subsidisation between businesses.

"The rules of separation do not mean community trusts have to sell their assets or businesses. The community can simply set up separate trusts to run their businesses.

"The people of New Zealand and our economy are the clear winners in these reforms, and New Zealand First is proud to have delivered on its commitments once again," Mr Peters said.