2 Apr 2009

No promises of cheaper power in electricity review

11:44 am on 2 April 2009

Energy and Resources Minister Gerry Brownlee says a review of the electricity sector will look at the affordability of power.

The review by Technical Advisory Group aims to address the Government's concerns about security of supply and power prices.

It will examine the design of the electricity market, regulation and governance issues.

Mr Brownlee says the Government is concerned about duplication of governance in the sector, security of supply and the affordability of electricity.

However, he is not promising that the review will deliver cheaper power.

Mr Brownlee told Morning Report there are a number of reasons for the 72% increase in power over the past eight years.

"(It is) probably because (of) a shortage of supply, I suspect it's because it was possible and also because we have had - under that security umbrella - four one-in-sixty dry years."

The minister has appointed a six-member technical group that will make recommendations to the Government.

The Labour Party says the Government has set an impossible task for the group reviewing the electricity sector, as there is no clear direction from the Government about where it wants the sector to go.

Energy spokesperson, Charles Chauvel says the Government needs to tell New Zealanders if it is still committed to 90% renewable energy by 2025, and if it still intends to wring maximum profits out of the state-owned power generators.