Electricity users ‘kept in dark’

Press, 20 May 1987, Page 14

Electricity users ‘kept in dark’

PA Wellington Consumers are entitled to know the basis for Treasury’s valuation of electricity assets at $8.5 billion, says the Electrical Supply Authorities Association. The association’s president, Mr Eric Johnston, said this week the country was being kept in the dark over the value of the assets. The Treasury has been negotiating with the Electricity Corporation for months over the value of national electricity assets due to be handed to the corporation. The supply authorities — the retail side of the industry — had been shut out of this process, he said. "We are the only avenue through which consumer interests can be represented,” Mr John-

ston said. “Consumers are entitled to know the basic case being put forward by The Treasury to justify its valuation of the assets at $8.5 billion, as against the corporation’s figure of $3.8 billion.” The E.S.A.A. sought this information from The Treasury and from the Ministers of Energy and Finance, who refused an application for release sunder, the Offical Information Act, he said. “We want the information so that the public can debate the issue. “The assets have been built up by funds provided by electricity consumers. We are not Impressed by Treasury creative accounting which can justify an asset valuation of $8.5 billion in one breath and, then assert that electricity costs will not increase in real terms.”