Wholesale Electricity Prices to Fall - Bradford

Enterprise and Commerce Minister Max Bradford today welcomed the announcement confirming that the split of ECNZ into three new SOEs will reduce the wholesale price of electricity.

"Electricity consumers are already seeing the benefits of the Electricity Industry Reform Act, passed just a little over two months ago, through real competition and the start of price reductions at the retail end of the electricity industry," Mr Bradford said.

"Today's announcement by ECNZ shareholding Ministers Bill Birch and Tony Ryall that work is progressing well towards the split of the SOE - and that it will bring savings of at least $150 million a year to households and businesses - is further evidence of the benefits of the Government's electricity reforms."

The Electricity Reform Transition Unit (ERTU) has reported that the split of ENCZ will meet the Government's objective of a more competitive electricity generation market, and is expected to reduce wholesale electricity prices by at least 10 per cent.

Mr Bradford said the Electricity Industry Reform Act, covering both the wholesale and retail ends of the market, will mean wholesale price reductions are passed on to domestic and business consumers - not just power companies.

Mr Bradford also welcomed ERTU's findings which confirm that the three baby ECNZs will be viable companies requiring no additional Government funding.