Bill amendments not enough for National

By RICHARD BRADDELL utilities writer

National still intends to oppose the electricity reform bill despite a Government backdown on regulation-setting powers that had been bitterly divisive at the Commerce Select Committee.

National and other opposition MPs last month combined to block the committee's report back to Parliament citing "draconian" and unconstitutional powers to regulate without oversight of the Regulations Review Committee.

Energy Minister Pete Hodgson this week moved to clarify misconceptions that the power would remain, confirming in a letter to the Business Herald that the clause had been deleted in extensive amendments to the bill.

"In fact, the Government has introduced amendments to the bill that fully address five of the six changes recommended by Parliament's Regulations Review Committee.

"They address the sixth recommendation in all but one respect, which concerns the breadth of the regulation power in relation to the wholesale market, where risks to security may arise," Mr Hodgson said.

But National's Commerce spokesman, Tony Ryall, said it still objected to regulation-making powers contained within the bill.

"The minister has proposed long-winded processes before he can make regulations but, at the end of the day, he doesn't have to take any notice of anyone else's opinion and he can also decide, if he wants to, to concertina the process without notice," Mr Ryall said.

With regard to wholesale market regulation, the amendments would require the minister to act on recommendations of the crown entity Electricity Governance Board (EGB) or after consultation with people likely to be substantially affected.

But an out-clause enables the minister to bypass those procedures if he considers it in the public interest, with consultation to take place within six months thereafter.

The EGB would be instituted in the event of market failure.

But Mr Ryall said consultation ahead of its implementation can be bypassed by a simple order in council.