Finance vital for power monitor

By FIONA ROTHERHAM

The biggest concern if the Commerce Commission is made responsible for regulating electricity prices will be whether it gets enough funds to do the job, says outgoing commissioner Dr Kate Brown.

She told a Wellington conference on electricity reform yesterday that she was confident the money would be forthcoming.

Dr Brown, who leaves the commission next week after five years, was speaking in her own right, not for the commission.

Industry players at the conference had questioned whether an under-resourced commission would be up to the job.

The electricity inquiry report recommended the Commerce Commission take over enforcement, with responsibility for information disclosure and any price regulation of lines companies.

That is in contrast to the ministerial inquiry into telecommunications, which last week suggested establishing an industry-funded regulator.

Dr Brown said the previous Government had budgeted a "large amount" last year to impose price controls. Some of that had been retained by the commission for background work on price controls.

"We never came to an agreement on what would be a fair price control should the Government decide to introduce it."

Changes would be required to the Commerce Act before the commission could introduce targeted price control on lines companies.

The electricity inquiry committee also said network charges should be limited to no more than 25 per cent of the typical household power bill.