Justifying price of electricity
Wellington reporter
The public totally fail to understand why electricity assets are being sold by the Government to the Electricity Corporation at an artificial price, according to the Energy and Minerals Advisory Committee.
The committee said the corporation’s debt-servic-ing requirement should not be increased by an arbitrary adjustment to the value of assets transferred.
The public would not support continual increases in the real price of electricity that were not adequately justified, particularly when based on a cost-plus philosophy, because that was seen as
inconsistent with the Government’s philosophy of a market-led economy.
These sentiments were found almost universally in the 140 submissions on electricity pricing received by the committee.
The committee comprises representatives of the private sector, universities, local government, and former public servants. It received submissions after the publication last January on a discussion paper — “The Anatomy of Electricity Pricing.”
The committee has sent a letter outlining the public’s concern about asset valuation to the Minister of .Energy, Mr Tizard.
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Press, 11 June 1987, Page 5
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166Justifying price of electricity Press, 11 June 1987, Page 5
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