Failure of Electricity Governance Board disappointing

National's Energy spokesperson Gerry Brownlee says the electricity industry's failure to reach agreement on an Electricity Governance Board is a major disappointment, and bad news for consumers.

"It's very disappointing because this was the industry's chance to have voluntary self-regulation without heavy-handed state involvement. Now that chance has gone.

"No doubt the Government will use this as an excuse to introduce broader changes to the industry. We can look forward to some serious regulation, and direct control from Ministers.

"This is all bad news for consumers. The current power crisis came about because of a lack of investment in new generation, and the signal that the prospect of Government control will send to those interested in investing in generation will not be a good one.

"National also greets cautiously the news that the development of the Pohokura gas field can now go ahead, but it welcomes the fact that new gas will be available.

"It's unfortunate, though, that this won't happen until 2006," says Mr Brownlee.

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