Rural communities deserve supply certainty

new-zealand-national-party

Tue Mar 06 2007 13:00:00 GMT+1300 (New Zealand Daylight Time)

Rural communities deserve supply certainty

Tuesday, 6 March 2007, 9:23 am
Press Release: New Zealand National Party

Gerry Brownlee MP
National Party Energy Spokesman

6 March 2007

Rural communities deserve certainty about the Government’s commitment to ongoing electricity supply after 2013, says National Party Energy spokesman Gerry Brownlee.

The Ministry of Economic Development has released the Terms of Reference for a review of Section 62 of the Electricity Act 1992. Under s62, electricity line companies are required to maintain existing connections until March 2013, after which there will be no obligation for supply.

In 2005, then Energy Minister Trevor Mallard said this would remove the obligation on line companies to continue to operate in ‘uneconomic’ rural areas. The truth is that without s62, line companies can refuse to supply any rural area.

“This provision for ‘continuance of supply’ was put in place during the 1998 Electricity Reforms to guarantee supply to people on rural lines,” says Mr Brownlee.

“This was vital and ensured distribution companies did not ditch services to rural consumers in order to concentrate solely on the more profitable urban customers.

“This review is completely unacceptable and creates immediate uncertainty for people in areas of low population.

“Rural communities are already suspicious of the Government’s so-called ‘consultation process’ after the debacle over the Waikato transmission lines, and this latest review will do nothing to alleviate their concerns.

“The Terms of Reference clearly state ‘continuance of supply’ after 2013 is no guarantee.

“It is totally arrogant and unfair to leave these communities in limbo.

“The Energy Minister needs to state now if he believes the existing arrangements should continue so this review can be called off or changed to focus on how the Government will ensure electricity provision for anyone likely to miss out after 2013.”

ENDS

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