Electricity tariffs to be reviewed

Press, 17 March 1987, Page 19

Electricity tariffs to be reviewed

PA Wellington The electricity tariff structure will be reviewed by the new Electricity Corporation in an effort to provide consumers with a wider variety of pricing and supply options. A new electricity pricing process will begin with market considerations and will be directly responsive to feedback from consumers, said the corporation’s chairman, Mr John Fernyhough. “In the past, prices have been greatly influenced by the political process whereas in future the market will have the greatest influence,” Mr Fernyhough said. An issues paper, “Electricity Pricing; An Invitation to Contribute," will be released at a press conference in Wellington on Tuesday as the first

step in the process of starting a public dialogue. “The new corporation will be working on an ‘open society’ basis and we want to involve the public in our business as much as possible,” Mr Fernyhough said. The paper offers a number of possible pricing schemes as well as a critique of the present bulk supply tariff which is criticised for its over-em-phasis on peak demand service and an inability to provide significant variations in costs.

The paper will be widely distributed among industry and policy leaders, key individuals and organisations as well as being on sale to the general public. All are invited to make submissions on the issues raised by it.