Powerco wants industry transparency

By Phil Boeyen, ShareChat Business News Editor

Tuesday 12th March 2002

Energy company Powerco (NZSE: PWC) has unveiled a four-step plan aimed at improving competition and performance in the electricity industry.

The Taranaki-based company launched its "Power Plan" at the Utilicon Conference in Auckland on Tuesday, calling for consistent regulation to be applied across the whole electricity sector, extending beyond just distribution companies to retailers and generators as well.

Chief executive, Steven Boulton, says it is clear that consumers are not happy with the performance of the sector.

"Consumers are unsure whether the regulatory regime is delivering value. The Power Plan is designed to change that.

"Recent events, including calls last week by Energy Minister Pete Hodgson for retailers to improve the competition in their sector, only serve to reinforce a growing concern that consumers are not getting a fair go."

Mr Boulton says his company wants to see more transparency, and poor performance targeted through greater application of regulatory powers across the sector.

"This is a critical time for our industry and it is crucial to get the regulatory balance right. This is an opportunity for New Zealand to show international leadership in constructing a utility regulatory model that works."

Powerco says it would like to see a set of parameters developed that determine good value and performance in the electricity sector and performance outcomes of companies published.

"We are not asking for more regulation, nor are we asking to be exempt from regulation. We simply ask that regulation be applied consistently across the whole sector, in order to ensure that consumers, electricity companies and other stakeholders alike get a fair deal," Mr Boulton says.

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