National grid spending could triple

Energy Minister Trevor Mallard has indicated he hopes to eventually double or treble annual spending on the national power grid.

The Government has been fighting opposition criticism over its handling of the country's power system after Monday's blackout in Auckland.

National Party MPs have heaped blame on ministers, saying they had been warned for years the electricity network was overworked and incapable of being serviced.

The Government has hit back with figures it says shows it is spending $300 million a year on grid improvements -- several times more than the National-led government of the 1990s.

National disputes the accuracy of the figures.

But Mr Mallard today said he was not satisfied with that increase in spending.

"Even though we have increased grid spending by about 500 per cent there is room for quite a lot more expenditure," Mr Mallard told National Radio.

"I think over the next few years to get the transmission really up to scratch we might have to double or even treble current spending."

The signalled boost is in line with Transpower's public plans to upgrade the grid -- but it must first win regulatory approval for its plans if they are to proceed.

Transpower is planning to spend $360 million in the next financial year -- rising to more than $900 million by 2010 -- if it can win approval from the Electricity and Commerce Commissions.

National is calling for the regulatory process to be streamlined so Transpower only has to deal with one agency to win approval for its planned upgrade of the Waikato lines leading into Auckland.

National says changes to the Resource Management Act are also needed.

Transpower and the Electricity Commission are currently working on an urgent report on Monday's blackout. It is expected to go to the Government in the next two weeks.

- NZPA