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Draft Government Policy Statement on Electricity Governance (Released 12 March): Summary of and Comment on Submissions

[ Last Updated 22 July 2008 ]



Submission Officials' Response
Para 134 – Orion – para 134 should be deleted. Management of losses should be left as an issue between the two Commissions. The EC has changed the allocation methodology for distribution losses between retailers, commencing 1 May 2008, which should allay retailer concerns. No change – indicates government policy that the EC will give effect to and should be giving consideration to in developing the MoU with the CC.
Para 134 – Orion - considers the term ‘minimise' is inappropriate as it implies an absolute priority - it is more appropriate to ‘optimise with regard to capital expenditure' as this correctly states the trade-off required. No change – paragraph reflects government policy as outlined in the NZEECS. Trade-offs between the objectives in this section will be managed by the Commission in developing arrangements.
Para 135 - IPENZ – Introduction of intelligent meters to New Zealand has been continually stymied by the incumbent power supply industry. Accordingly, this extremely important strategy should be recommending regulations rather than guidelines which will be portrayed by the industry as altruistic but impractical. Noted – paragraph 49 outlines government policy in respect of advanced metering issues.
Para 136 – Genesis suggests shortening paragraph and removing reference to regulation. Agree – revisions made.
Para 137 – KCE – Disagree strongly with the position outlined. It takes hard work and knowledge development to understand the situation fully, but it is quite possible to work effectively in the hedge market. Noted.

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