Reforms Working:lower Power Prices In Marlborough

Enterprise and Commerce Minister Max Bradford has welcomed Meridian Energy's decision to compete in Marlborough
and offer consumers lower power prices.

Mr Bradford, who has a house in the Marlborough Sounds said he would be signing up with Meridian "as soon as I get the
phone number."

"If Marlborough consumers do not like what TrustPower is giving them they should give Meridian a call. Cheaper power
prices are only a phone call away," Mr Bradford said.

Under prices being offered by Meridian from June 1, average consumers who use 8000Kwh of power annually can make
savings of between $35 and $118 a year .

Meridian, which is the country's largest electricity generator, has promised to cap prices until March 2001.

The announcement follows the release of a Ministry of Commerce analysis showing some 917,000 or 55% of New Zealand
consumers now pay (or can choose to pay if they switch retailer) an electricity price that is lower than the price they faced
as at 1 April 1998.

In addition, a further 20 per cent of consumers had no increase in power prices over the last year.

Mr Bradford said the analysis showed that 75 per cent of New Zealanders were better off, could be better off or faced stable
power prices as a result of the reforms.

It also showed there had been a reversal of the long term power price trend for ordinary consumers.

The result was a resounding victory for the Government's electricity reforms, he said.

"The reforms have delivered greater choice and lower prices. "The majority of New Zealanders are already seeing the
benefits, which will be more widespread as power supplier competition increases.

"My expectation is that with the pricing measures announced this week, which will ensure that electricity lines businesses
face greater pressure to become more efficient, further gains will occur," Mr Bradford said.