Revised Policy Direction For Electricity Commission
May 13th, 2009
The Govt, seeking to accelerate “prudent” investment in the national electricity grid, has revised its policy directive to the Electricity Commission. The new Govt Policy Statement introduces a streamlined, simplified process for transmission investments under $20m, which Energy Minister Gerry Brownlee says will save time and cost, as well as speeding up upgrade work.
“An important feature of the GPS is bringing forward the section which emphasizes security of supply”, Brownlee said. “The Govt believes disentangling the regulatory overlap between the Electricity Commission, Transpower, and the Commerce Commission is important, too. Getting that right will take time. A ministerial review is already under way. The Govt is now taking the interim step to ensure transmission investment can happen more quickly.” Up till now, any plans advanced by Transpower for new grid work, even relatively small upgrade projects, have to be assessed, and approved, by the Electricity Commission. The Commission retains this responsibility, but with a fast-track mechanism, under the new arrangement.
Brownlee says the regulatory function of the Electricity Commission was identified at the Jobs Summit by many sectors as delaying transmission investment and being a blockage to both infrastructure investment and expansion of jobs. Other changes to the GPS reflect the Govt’s intention to review the NZ Energy Strategy and assess any duplication with the NZ Energy and Efficiency Conservation Strategy. Brownlee confirmed the Electricity Commission has been consulted, as required by the Electricity Act, on the GPS, which sets out objectives and outcomes expected from the Commission.
Copyright © Media Information Ltd
NZ Energy & Environment Business Week
Amalgamated Dairies