Power rise to mean ‘subsidy by users’

Press, 18 March 1985, Page 12

Power rise to mean ‘subsidy by users’

PA Wellington Electricity consumers will be subsidising the rest of New Zealand and also uneconomic Government departments after April 1, according to Mr I. E. KerrTaylor, president of the Electrical Supply Authorities’ Association. Mr Kerr-Taylor said that he applauded the decision of some of New Zealand’s biggest energy users to challenge the Government on electricity pricing policies. “I do so because these major exporting companies now obviously better understand that the responsibility

Lor over-priced electricity in this country rests clearly on the Government and not with individual electrical supply authorities,” he said. Mr Kerr-Taylor was commenting on reports that members of the pulp and paper industry, such as Tasman Pulp and Paper, Winstones, Carter Holt, N.Z. Forest Products, and Caxtons have banded together to study electricity pricing and the planned 25 per cent rise in the bulk electricity tariff from April 1. The group has hired a consultant to report so that they can make submissions

to the Government. “I am optimistic that in due course I shall have the opportunity to see the report from W. D. Scott,” said Mr Kerr-Taylor. “I expect it will confirm not only the major users’ views, but also my own, that the electricity consumer, without having to face up to a plus 25 per cent increase was, in fact, paying his own way as he has always done, and after April 1 will be subsidising not only the rest of the country, but also some other uneconomic Government departments,” he said.