Public's pylon thoughts sought

The public is being asked what kind of energy industry it wants if it hopes to avoid the need for building new electricity transmission lines.

Electricity Commissioner Roy Hemmingway is looking for submissions for alternatives to Transpower's plans to to string a line of power pylons through the Waikato to Auckland.

Yesterday he released a paper to ask for "high-level policy direction".

Transpower says the new line is crucial to securing electricity supplies to a rapidly growing Auckland region.

Mr Hemmingway said that "several industry stakeholders" had expressed concern that methods of paying for alternatives to new transmission would mean a return to central planning in generation investment.

He said that on the contrary, the commission was "firmly committed to supporting and facilitating the ongoing development of the electricity markets in New Zealand".

Mr Hemmingway said what the commission wanted was ideas on the sort of market structure needed to help make good decisions about transmission alternatives and grid investments.

Transpower yesterday formally submitted its proposal for the 400kV Otahuhu to Whakamaru line to the commissioner.

His review of submissions will start in July and be published in August for further comment. A final decision on the proposed $500 million upgrade is expected before July next year.

One option in the latest Hemmingway paper was classified as "market response", which leaves investment decisions dependent on market conditions.

Another suggestion was "universal central procurement" - where a central body would work out what was needed and run a tender process.

The commission said it had no preference for any of the options.

* Energy Minister Trevor Mallard says New Zealanders' "not in my back yard" attitude is one of the biggest challenges for the energy sector.

He told the finance and expenditure select committee yesterday that energy problems would probably be solved through a mix of some transmission investment, new power plants and energy efficiencies.

- additional reporting NZPA