Transpower to stay under two masters

State-owned national grid operator Transpower will remain under the dual control of the Commerce and Electricity commissions for at least a year.

Energy Minister David Parker yesterday rejected a proposal for all oversight of the grid to come under one body, as canvassed in a discussion document last November.

Transpower, at present, is subject to the Commerce Commission's control and information disclosure regime, while the Electricity Commission approves grid upgrades, and recommends rules for transmission service and quality standards.

The arrangement has been criticised by the sector as too complicated.

The minister decided against amalgamation of oversight because it could further delay pending decisions on the grid upgrade, including the controversial 400kV line from the Waikato to Auckland.

The Commerce Commission had also recently decided to declare control of Transpower's transmission services, a process that could be adversely affected by a transfer.

"I have decided to revisit the transfer in one year. By then, these issues will be clarified, the Commerce Commission's investigation should be complete and the Electricity Commission's current heavy workload should have eased," said Parker.