Penalties suggested for late jobs

Press, 8 March 1989, Page 4

Penalties suggested for late jobs

Electricity suppliers penalising themselves by paying compensation to customers when jobs are not done on time, has been suggested by a British electricity marketing expert in New Zealand to speak to industry groups. Mr Derek Kenworthy was, until his recent retirement, the marketing director of the East Midlands Electricity Board. He was in Christchurch yesterday to address South Island electricity retailers. He was involved in marketing initiatives in Britain to arrest declining electricity sales, and said New Zealand faced similar problems. Although electricity had a monopoly for lighting, refrigeration and powering appliances such as television sets, it faced competition from fossil fuels for things such as space heating, said Mr Kenworthy. In New Zealand, about 70 per cent of all consumption, and more than 80 per cent of the domestic market, was “contestable” in that manner, said Electricorp’s South Island

regional manager, Mr Mike Hewlett.

Mr Kenworthy said that the aim in Britain had been to keep price rises below the rate of inflation, retail efficient appliances, and provide efficient customer advice and service.

Mr Kenworthy also outlined changes in the industry structure in Britain, similar to those happening in New Zealand. A bill now before the British Parliament would privatise the industry next year, splitting the generating board into two competing companies, and privatising the 12 area supply boards. The British proposal would require the area companies to supply power to anyone who wanted it within their areas, but customers would have the right to ask for cross-border supply.

There would not be much cross-boundary competition, and only big consumers would ask for it, but it would be the spur to efficiency, said Mr Kenworthy.