Review Aims to Keep Power On for Rural Customers - Minister of Energy Media Statement

The government is asking for feedback on how electricity should be supplied to remote rural users, beyond 2013.

"We want consumers to continue to have access to an electricity supply that is efficient, fair, reliable, and delivered in an environmentally sustainable manner," Energy Minister David Parker said.

Under subsection 6 of section 62 of the Electricity Act, the obligation for lines companies to continue to supply electricity to properties that were connected on 1 April 1993 currently ends on 31 March 2013.

"This review of part of the Electricity Act is to make sure we have arrangements in place so that the lights stay on for rural electricity users," David Parker said.

The sunset clause in the Electricity Act is mainly relevant to remote rural electricity consumers, whose lines can be expensive to maintain, and may be considered uneconomic by lines companies. Customers connecting to lines after April 1993 are not affected, as the terms and conditions around the continuance of supply should be part of their electricity connection agreement.

The discussion paper seeks feedback on a number of options, including continuing supply obligations with no expiry date, extending a transition period beyond 2013, and lines companies providing assistance to consumers to manage transitions to alternate systems.

"We've decided against a 'do-nothing' option, which would prolong the uncertainty currently faced by many rural customers," David Parker said.

Submissions on the discussion paper close on 28 September 2007. A copy of the discussion paper can be found at the MED website.

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