Some Electricity Companies Still Seem To Fear Competition

Enterprise and Commerce Minister Max Bradford said today it was clear the mindset in some parts of the electricity industry had not changed since before the Government had to take steps to force competition on a reluctant industry.

Mr Bradford was commenting on a report in the New Zealand Herald this morning which included comments from TrustPower chief executive Jeff Williams.

"TrustPower has always been at the vanguard of complaining about the competitive structure that will be in place from 1 April. Indeed, I have a suspicion that their position is influenced by a fear of competition because of the very high prices they have paid for some of their generation and distribution assets," Mr Bradford said.

"I was until recently a TrustPower customer, and I know more than a little about their overall strategies to make life difficult for other companies wanting to introduce competition into the TrustPower area.

"I think it needs to be clearly appreciated both by the industry and the public that the full set of measures to promote competition and to regulate the activities of natural monopoly line companies does not come into effect till April 1."

Mr Bradford said a national profiling system - which will give consumers real choice about which electricity company they buy their power from - is also due to be launched in the week after 1 April.

"This is a step on the way to a competitive metering solution for consumers, whether large or small," he said.

Responding to comments by Labour energy spokesman, Mr Bradford said: "Mr Hodgson's beating of the drum disguises his and the Opposition's lack of understanding about how the competitive electricity market will work.

"Thus far, Mr Hodgson has been proven wrong at every step of the way. He said competition for householders would never arrive - but as thousands of New Zealanders know, it has.

"He said the Electricity Industry Reform Act would never work and would require major amendments. It has worked, it hasn't required amendments and it won't require amendments.

"He said the Government would not regulate the lines companies. We have, and the measures to be introduced from April will put continuous pressure on the lines companies to be competitive and the will allow the benefits to flow through to consumers.

"What we have seen the past few days is a rush to judgement by a number of vested interests in the industry and the Opposition who cannot bear to see competition succeed and genuine choice given to consumers."