Electricity users warn of dam costs

Press, 6 November 1986, Page 33

Electricity users warn of dam costs

PA Wellington Electricity consumers should not be expected to meet the cost of the political decision to build the Luggate Dam, according to a group of industrial electricity consumers. The chairman of the Major Electricity Users’ Group, Mr Andrew Brewis (general manager of Winstone Industries), says the Government cannot have it both ways., “The decision to implement the corporatisation programme for Stateowned enterprises was primarily to bring efficiencies to the State trading organisations through the imposition of commercial realities on their operations,” he said.

“Provided there are

safeguards to ensure the electricity corporation exercises its position as a natural monopoly respons-. ibly, we have no argument with the corporatisation process.

“However, any extra costs arising from the Government’s social or political objectives should be borne by the Government. They should not be loaded on to the price the consumer has to pay,” Mr Brewis said.

The Major Electricity Users’ Group was formed recently ■ under the auspices of the New Zealand Manufacturers’ Federation. Its objective is to ensure fair and reasonable electricity pricing policies.