Power board supports new deal

Ruapehu Bulletin, Volume 7, Issue 337, 29 May 1990, Page 7

Power board supports new deal

King Country Electric Power Board has announced it supports the Electrical Supply Association's "Better Deal for the Consumer" package, following abandonment of proposals to privatise the power supply industry.

Plans to gift shares in power boards was scrapped after Cabinet discussions earlier this week. KCEPB chaixman Ken Street said the Government will be doing the industry a major service if it clearly defines the ownership issue. "A corporation with defined shareholders is a step forward," he said in submissions sent to ESA yesterday. "Shares should be held in trust with trusts appointing directors for their expertise. "Trusts would disperse profits as they saw fit and may choose to subsidise rural consumers. Trusts should be elected by the consumers of the corporation." Other parts of the Better Deals package particularly supported by the KCEPB include: • Remote rural consumer subsidy by the industry. • Removal of the domestic non-domestic cross subsidy, but with a common price level for domestic customers as at present. • Removal of franchise areas and the obligation to supply. • Investment by supply companies in generation. • Removal of legislative barriers to amalgamation (although it is recognised that corporatisation might achieve this). • Contestibility for large customers. • A system of national performance indicators.

Mr Street said the KCEPB would find it difficult to separate supply and energy costs as has been proposed. In tabling the submission at the May board meeting in Ohakune Mr Street said his first reaction to the dropping of the share gifts scheme was that "suddenly we are getting some common sense." "If future negotiations are handled in a sensitive manner we may get sensible restructuring of the industry." Board members agreed a united approach by the electrical supply authorities made it more likely that Government would endorse the Better Deal concept. Tangible reminder King Country Electric Power Boar members were left in no doubt as to a major industry in the Waimarino when they held their May meeting in Ohakune. Board member Ian Strachan presented each of the visiting board members with bags of carrots and parsnips ...

Chairman Ken Street said it was 18 months since the board last held a meeting in Ohakune but the board was delighted to be back. The board used the opportunity to pay a bus visit to points of interest such as the old Ohakune depot and the proposed Karioi power project. Same day reconnection aim Most tirban consumers wanting power where reticulation exists can expect to have a same day service in most parts of the King Country Electric Power Board area. Cheif engineer Colin Martin told the board the exception currently was Ohura, where supply was generally made the next working day. Night store heaters popular Night store heaters have become a popular line in the King Country Power Board's area this year. More than 30 have been sold by the board so far this winter and the board is expecting further saies as people realise the cost saving advantages.