Future power supplies OK, says SOE

Mighty River Power says its decision not to convert to coal the never-used oil-fired Marsden B power station near Whangarei reflects an easing of concern about future power supplies.

Doug Heffernan, CEO of the state-owned power company, says domestic gas supplies have been boosted and billions of dollars have been invested in new power projects since 2003, when there was a high level of concern that New Zealand might run short.

He says projects include a huge geothermal plant at Kawerau.

Mr Heffernan is denying that pressure from opponents led to the decision to pull the plug.

The Marsden B oil-fired plant was built in the 1970s but never used because oil prices at the time were too high.

Penalties under proposed carbon emission policies could also have proved a deterrent not recommission the power station.

- NEWSTALK ZB