Gas could go under electricity thumb

By CHRIS DANIELS energy writer

A new electricity czar may soon find him or herself in charge of running the gas industry.

The Government this month gave the gas industry the hard word - telling it that legislation would be brought in to regulate it unless it could agree on a suitable self-governance regime.

One of the options open to Energy Minister Pete Hodgson is to widen the scope of the electricity commission, which is now being set up after that sector failed to agree on a self-regulation regime.

Nominees and applicants for jobs as commission chair or members are now being studied by the Government, with an announcement on its make-up expected next month.

One industry executive said the planned legislation was draconian and totally unnecessary for an industry that was making good progress towards an agreement on self-regulation

The Government says its plans are simply "backstop legislation" to be used only if the industry shows it cannot regulate itself.

A Gas Industry Steering Group, made up of most of the big players in the industry, has been established so far. Chaired by former Prime Minister Jim Bolger, the group met last week to consider the planned new laws, but did not issue any formal reaction to the proposal.

The Government hopes to have the new laws in place by the end of this year.