Electricity ‘cost secret’

Press, 26 January 1988, Page 4

Electricity ‘cost secret’

PAQ Wellington Electricorp would keep its basic electricity cost secret, said Major Electricity Users’ Group chairman, Mr Andrew Brewis, yesterday. New Zealand consumers had always expected to know what the basic power increase was even though power bill changes would vary from area to area, he said. He recognised Electricorp was introducing different prices for electricity supply authorities who would sign long-term contracts. Mr Brewis said there must be a baseprice comparison with last

year and that figure must be released.

"The proposal not to release the prices is terrifying secrecy on the part of a new corporation which has monopoly control of an essential commodity which all New Zealanders must use.” Corporatisation was intended to improve efficiency and shed light on what was previously a large Government bureaucracy. “Instead we have been plunged into darkness. Has the base price gone up or down — and by how much? That’s what we want to know. We would

expect the entire country and the Government to want to know that, too.” He said the users group had supported corporatisation on the grounds of likely efficiency improvements. But the group was concerned it had no way of assessing whether improvements were made. He called on the Minister in charge of Stateowned Enterprises, Mr Richard Prebble, to release the price details and then set up a system to monitor Electricorp efficiency in which the public could have confidence. ( But the Electricorp Marketing general mana-

ger, Mr Drew Stein, said Mr Bowis’ comments were misleading and mischievous. He said corporation customers would be more fully informed than before. The corporation would be making a statement soon about the direction of power prices for the short to medium term. Mr Stein said it was ridiculous to give a general price when electricity prices varied between one area and another. He said power prices had been substantially reduced in some areas of the North Island.