Electricorp changes concern chairman

Waimarino Bulletin, Volume 5, 28 July 1987, Page 1

Electricorp changes concern chairman

The prime concern of the King Country Electric Power Board is to supply electricity to their consumers at a reasonable rate, according to board chairman Ken Street, but he has expressed concern that with the trend towards corporatisation, smaller boards such as KCEPB would be left behind and along with them, their consumers. From the beginning of April this year the Electricity Division of the Ministry of Energy became Electricity Corporation of New Zealand Limited (Electricorp) under the government's plan to achieve higher efficiency in the Electricity supply area. In his annual report Mr Street said he feared that a high valuation of assets would result in extra costs and an inevitable rise in electricity rates. He said the deregulation and commercialisation of. the Electricity industry from April next year could only result in higher costs. The proposals to restructure power boards into shareholder companies would mean they would have to

yield a dividend and be subject to taxation. "In the real world of commercialisation where the cost-plus mentality operates this concept can succeed," said Mr Street in his report, "but I believe that access to electricity at a fair price is a consumer's right." In his report he commented on the statement from Electricorp that it will not supply electricity directly to industries such as Karioi Pulp Mill. "It is only one year ago that we were forced to give up the right to supply our largest consumer, the Karioi Pulp Mill, because government had directed that large industries might apply for direct supply from Electricity Division of the Ministry of Energy," said Mr Street. "This is a complete reversal of a policy implemented to recently and is of little comfort to my Board which has no chance of being able to supply Karioi again," he said. "I am sceptical of the statement by Electricorp, political muscle is all important when big business is calling the tune, and I believe that the ultimate decision on direct supply will come from Government itself," said Mr Street.