Government cracks the whip over costly pylon plan

The Government is swinging behind the pylon plan.

The Government yesterday gave the clearest indication yet that it supports national grid operator Transpower's controversial plans to build the new 400kV power line through the Waikato to Auckland.

It told the Electricity Commission that the regulator's "paramount" consideration should be the maintenance of a secure energy supply.

The Government also said the national transmission grid should be constructed to foster competition among electricity generators and to encourage renewable energy sources such as wind and hydro power.

The views are in sharp contrast to the commission's justification of its decision in April to reject the controversial $500 million, 186km line, with its 430 towers, some up to 70m high.

Then it said Transpower had overstated its argument that the line would give hydro-electric and wind generators better access to the Auckland market.

Energy Minister David Parker said: "It is public knowledge that there have been some difficult relations between the Electricity Commission and Transpower. We are making it absolutely clear that it is their responsibility to ensure that those problems do not unnecessarily delay decisions and put at threat security of supply, which I have said is our paramount concern."

Mr Parker acknowledged that costs would be passed on to consumers, but did not think there would be large increases.

The Government set out its views in a draft national policy statement on electricity - which under the Electricity Act the commission is required to "give effect" to.

Prime Minister Helen Clark said the new focus on security of supply was driven partly by arguments over the line. But the power blackout in June supported the revision.

The policy statement also suggested Transpower should be given the power to recover the costs on investments in land to build the Waikato line.

Mr Parker said the new statement did not imply a criticism of the Electricity Commission. But he declined to say whether he would seek to reappoint Electricity Commissioner Roy Hemmingway.

Auckland energy consultant Bryan Leyland urged caution against rushing into such a large investment without making enough provision for new energy supplies such as gas developments.

Manukau Mayor Sir Barry Curtis said it seemed Transpower was still keen on marring a magnificent rural lane with its high pylons.

But he was discussing ways of achieving environmental acceptability and had given Mr Parker a commitment of support for resource consents for a second Otahuhu electricity substation to safeguard power supply within Auckland.