Powerco charges disputed

By CHRIS DANIELS energy writer

Powerco, the loudest critic of Government plans to regulate the monopoly power lines sector, is being accused of overcharging its Coromandel business customers.

Waihi Gold Mining has complained to the Commerce Commission, saying the New Plymouth-based Powerco is abusing its monopoly position.

Powerco, which is New Zealand's second-largest power lines firm, has been at the forefront of opposition to the commission's new system of regulation.

David Ingle, general manager of the Waihi mine, says Powerco and its predecessor companies, PowerNZ and UnitedNetworks, have been overcharging his company since the mine opened in 1986.

Changes made to the Commerce Act in 2001, which gave the commission powers over the electricity lines companies, prompted Waihi Gold to complain.

"All attempts at negotiation with the lines companies have been largely unsuccessful," Ingle said.

But Powerco chief executive Steven Boulton said he was surprised to hear of Waihi Gold's concerns. The companies had been talking recently and the issue of prices had not arisen.

"They should have said something to us and said 'We'd like to renegotiate our lines charges' but nothing's been said ...

"It's a real mystery and a real surprise to us."

Powerco had not even been raising its charges to keep up with inflation, Boulton said.

"Any claims about excessive charges are completely unsubstantiated because we just haven't had the increases."