By JAMES GARDINER
Electricity industry chief executives are meeting this week to thrash out how they respond to issues arising from the Government's inquiry into their industry.
The private meeting, convened by one of three competing state-owned generators, Meridian Energy, has alarmed consumer groups which have been left out.
Industry observers say the companies risk falling foul of the anti-competitive provisions of the Commerce Act. Almost anything they discuss behind closed doors in Wellington on Wednesday could be construed as price-fixing.
"It's supply-side thinking again; they haven't learned, this industry," said Ralph Matthes, executive director of the Major Electricity Users Group.
Meridian has invited its fellow state-owned generator-retailers Genesis and Mighty River Power.
The three companies were formed last year by splitting the Electricity Corporation in a bid to get competition into the generation sector.
Also expected to be present is a representative of the earlier ECNZ-offshoot, the now-privatised Contact Energy, with fellow generator-retailers TransAlta and Trustpower.
Lines companies, which operate monopoly networks, have been invited, as has the state-owned national grid operator Transpower and the electricity market company Emco.
Meridian spokesman Alan Seay said reporters and the public would not be welcome despite the fact the industry remains largely in state or local public ownership.
"It's a meeting of the industry to discuss how it will respond to the challenges laid down in the ministerial inquiry into electricity," Mr Seay said.
"The agenda is basically to provide some feedback for the Minister of Energy [Pete Hodgson]."
Government officials had not been invited but Mr Hodgson had been told of the meeting and its purpose.
Mr Matthes said: "We will be seeking an assurance that any such meeting, inasmuch as it is between parties in competition with each other, has no official sanction or discusses any matter affecting consumer choice or the price ultimately paid by consumers."
The one thing power companies appear to have in common is a desperation to head off more Government intervention.
However, based on the industry's chequered history, consumers may feel entitled to be suspicious.
The inquiry, headed by former Labour Minister David Caygill, strongly favoured industry-driven solutions without giving a clear and cohesive path for the Government to implement its recommendations.
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