After studying the releases from Energy Minister David Parker and Commerce Minister Lianne Dalziel on proposed changes to part 4A of the Commerce Act, Powerco acting Chief Executive Nigel Barbour said it was clear the Ministers and the Ministry of Economic Development had listened to and understood the concerns of infrastructure investors.

“Powerco is a long term infrastructure investor and investments we make today have lives of up to 60 years. To make effective long term decisions we require certainty in terms of the regulations that govern our electricity and gas network businesses. A lack of certainty now will have impacts on the quality of infrastructure for our grandchildren.”

“The changes proposed to the Commerce Act will increase certainty as we plan ahead allowing us to work more effectively and constructively with the Commerce Commission going forward. Ultimately this will allow us to deliver a better service to customers connected to our networks through our programme of investments and upgrades.”

Mr Barbour said the up front clarification of rules, setting of fixed timeframes for decisions from the Commerce Commission, introduction of merits review and the added option of customised price paths tailored to companies’ future investment requirements were all positive outcomes for infrastructure investors.

“From Powerco’s perspective the key benefit the changes bring will be the ability to go to the Commerce Commission and seek answers to questions before we make decisions. Rules are going to be developed prior to implementation so we will have clarity around regulation combined with certainty and also the flexibility that can come through customisation of price paths designed specifically for the business they apply to.”

“Clearly the test for these changes will be in the detail of the final legislation however the signal from the Government is a positive one for infrastructure investors.”

Powerco is New Zealand’s second largest electricity and gas distribution utility with around 400,000 consumers connected to its networks. Powerco’s electricity networks are in Tauranga, Thames, Coromandel, Eastern and Southern Waikato, Taranaki, Wanganui, Rangitikei, Manawatu and the Wairarapa. Its gas pipeline networks are in Taranaki, Hutt Valley, Porirua, Wellington, Horowhenua, Manawatu and the Hawke’s Bay.