The possibility of a negotiated outcome from the Transpower charging issue is a positive development says Business NZ.
In November Transpower announced plans for a 19% price increase, incurring the risk of regulation by the Commerce Commission.
Business NZ Chief Executive Phil O’Reilly said it was good news that Transpower had now opted to bring a settlement offer to the Commission in May.
“Business NZ’s submission recommended that the Commission investigate whether any price increase can be justified before deciding whether control is desirable, and it is good to see that course of action is to be followed.
“There is a certainly a need for some control over the behaviour of monopolies, but there are also dangers from over-regulation.
“Light-handed regulation of the electricity sector - allowing certainty for investment and a minimum of compliance costs - is crucial for economic growth.
“Hopefully the Commission and Transpower will now reach an agreement on what level of increase is justified.”
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