Policy Area: Energy

Statement of General Direction:

To ensure the continuing availability of energy services, at the lowest cost to the economy as a whole, consistent with sustainable development.

Key Initiatives of Policy:

No privatisation of ECNZ

No privatisation of Contact Energy

No privatisation of Trans Power

Overhaul energy pricing

Improved efficiency and conservation

Projected cost arrangements with regard to the Cook Strait cable to be reviewed with the fairness of both Islands in mind.

Fiscal Implications of this Policy Agreement:

$3 million to maintain Energy Efficiency and Conservation Authority funding.

(All funding proposals subject to being considered within the agreed spending policy parameters.)

Legislative Implications of this Policy Agreement:

Appropriate changes to regulation under the Electricity Act to implement changes to fixed line charges and to ensure non-discriminatory access over spur lines.