Cut hint for line charges

By RICHARD BRADDELL

Electricity lines company UnitedNetworks could lower its charges in the second half of this year, possibly bringing lower power bills for consumers in Auckland, Wellington and the Bay of Plenty.

Chief executive Dan Warnock said the company's priority had been to return to shareholders some of the synergies from the integration of the TransAlta and Orion electricity and gas networks to justify the prices paid for those assets.

But the issue of sharing gains with "ratepayers" had been discussed at a board meeting last Tuesday, and the board had asked for a proposal within two months.

United announced yesterday a first-half net profit of $48 million, up 27 per cent on the $37.7 million in the same period ended June last year.

But Mr Warnock said a meaningful comparison was difficult because of the substantial changes in United's business over the past year. The 1999 first half included a $13.4 million loss from the writedown of the value of now-sold Horizon Energy and United's share of the 52 per cent-owned company's operating earnings.

Excluding the writedown, pre-tax earnings of $47.8 million were up 3.5 per cent from $48.4 million.