Powerco hopeful about new price rules

Electricity networks company Powerco is "cautiously optimistic" after the Commerce Commission published its decisions on prices and quality in the industry.

The rulings will apply to electricity distribution businesses from April 1, allowing prices to be increased by the rate of inflation while ensuring quality of supply to consumers.

Powerco yesterday said it remained positive that any initial price adjustment would not detract from investment. The commission would not release a decision on whether an initial adjustment was needed until the end of 2010, Powerco said.

Its regulation and business manager Paul Goodeve said it had been working closely with the commission on a regulatory regime which ensured consumers' expectations around price were met while improving certainty on infrastructure investment.

It supplies 314,000 customers in Wairarapa, Manawatu, Wanganui, Taranaki, Western Bay of Plenty, South Waikato, Hauraki Plains and Coromandel.

- NZPA