Government weighs options over power plans

The Government may step into the wrangle over securing Auckland's future power supply.

In the Beehive's strongest statement yet on the standoff between the Electricity Commission and national grid operator Transpower, Finance Minister Michael Cullen yesterday said the Government would "have to think about its options" in the absence of an agreement on Auckland's power.

"The Government does have certain powers in terms of policy statements and so on," Dr Cullen said.

He did not say what form the Government's intervention might take.

In a draft decision last month the Electricity Commission rejected a $600 million plan by Transpower to build a 400kV line from the Waikato to Auckland using power pylons.

Uncertainty now surrounds what form a much-needed upgrade to Auckland's power supply will take.

Dr Cullen described the matter as "urgent" and said he hoped the commission and Transpower would be able to come to a joint decision on a way forward before the end of July.

Thursday's Budget offered little in the way of immediate changes but senior Government figures have been making increasingly regular statements about the need for change.

Prime Minister Helen Clark yesterday added her weight to the argument when she said the only acceptable outcome to the Auckland transmission standoff was an "adequate and secure power supply".