Vastly differing views were expressed last night on how much benefit Otago electricity consumers will get from the Government's Electricity Industry Bill, being introduced to Parliament today.
Alexandra Mayor Malcolm Macpherson did not see anything in the package "that's going to have a significant impact at the household level".
Dunedin-based Aurora Energy chief executive Grady Cameron considered the changes were "unlikely to deliver substantive savings" but might constrain future price increases.
Federated Farmers electricity spokesman Philip York "applauded the bold proposals" that would make the electricity market "more consumer friendly".
Major Electricity Users Group executive director Ralph Matthes considered the changes would "give a lift to competition".
Announcing details of the Bill, Energy Minister Gerry Brownlee said it was designed to achieve security of supply, give clear signals over investment in new generation and "beef up" competition.
However, Dr Macpherson, who has led much of the South Island criticism of power pricing, told the Otago Daily Times the measures might produce some competition, efficiencies and conservation and "maybe some medium to long-term benefits at consumer level".
"There's nothing here that I can see that will make people feel more comfortable about next winter."
Dr Macpherson said inland Otago households were paying higher prices than elsewhere in New Zealand and Mr Brownlee could have made some "brave decisions" around capping price increases.
"He could direct the state-owned enterprises to . . . manage their prices down.
"Because they are so dominant in the market, it would effectively drive down the whole market prices."
Mr Matthes, whose group represents 20 big consumers that use just over a quarter of New Zealand's power, said the measures "will make a difference to both households and large users".
"I think it is a very pro-competitive, pro-consumer package, actually.
"There's never any silver bullet around improving competition in electricity markets anywhere in the world.
"They are complex beasts and they are prone to market power.
"They are also prone to over-regulation by Governments."
He believed the Government had taken a "big step" in putting forward the idea of asset swaps.
"I think that is going to help competition in the wholesale markets, and that inevitably will help new-entrant retailers or existing retailers to enter into competition in other markets."
Mr Matthes said in Alexandra's case, the changes meant Genesis Power would have "a bit of a footing in the South Island" and that and other changes would produce competition.
"It is always easy for the critics of the electricity market to say it's not working.
"But you have to ask yourself what's the alternative, and the alternative is to go back to state regulation somehow.
"And that's not going to happen."
Electricity Industry Bill
Measures being introduced today by Energy Minister Gerry Brownlee, and likely to be in place by October.
• Allow lines companies back into electricity retailing, with controls.
• Require generators and retailers to compensate consumers for conservation campaigns or dry-year power cuts.
• Take the Tekapo A and B hydro stations from Meridian and give them to Genesis Energy.
• Will reduce Meridian's 70% dominance of hydro generation to 50%.
• Give the Government's Whirinaki "peak demand" station to Meridian.
• Require "virtual asset swaps" between Meridian, Genesis and Mighty River Power during a 15-year contract so companies can compete where they have little generation capacity.
• Require major generators to make available 3000GWh of electricity to a hedge market to give more flexibility.
• Establish a $15 million fund to promote customer switching between retailers.
• Replace the Electricity Commission with a slimmed-down Electricity Authority.
• Provide more monitoring of Transpower, with the Commerce Commission responsible for approving power-grid upgrades.
