Power users promised better treatment

By CHRIS DANIELS consumer reporter

Power prices will be fair now that Labour is in Government but they will not necessarily drop, says Energy Minister Pete Hodgson.

Speaking to the Herald as this newspaper wraps up a series highlighting the chaos of the first 20 months of full competition in the electricity market, Mr Hodgson said the industry was improving.

He would not promise cheaper power, as his National Party predecessor, Max Bradford, had done, but he was sure consumers would soon be treated better than they had been.

He has directed the electricity industry to sort itself out, agree on proper rules, install an ombudsman and offer a cheap fixed-rate tarifffor consumers who use little electricity.

If the industry fails to do so, legislation before Parliament will give him the power to force exactly the same thing.

Described by former Prime Minister and constitutional lawyer Sir Geoffrey Palmer as "one of the biggest legislative sticks we've seen for a long time," the bill could become law as early as April.

Green Party co-leader Jeanette Fitzsimons said the party agreed in principle to support the legislation and was now much happier with Mr Hodgson's plans.

She said the acceptance of the Greens' request for the Auditor-General and the Parliamentary Commissioner for the Environment to audit the new Electricity Governance Board had increased consumer protection.

Mr Hodgson has said the new board will be dominated and chaired by independents, with the interests of the consumer at heart.

But Ms Fitzsimons said lawyers, consultants and former industry players would inevitably control the board, so the scrutiny of the Auditor-General and environment commissioner was critical.

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