The government today has announced its long promised review of the electricity sector's performance, which will place particular focus on the role of the Electricity Commission.

Energy and Resources minister Gerry Brownlee says his review of the electricity sector will start work immediately, and announced the six independent experts being appointed to a Technical Advisory Group.

Mr Brownlee says the report is in response to government concerns surrounding the security of supply, affordability, and the duplication governance.

The terms of reference place a more business community focused approach on the review, including looking at Transpower's regulation, whether there is sufficient industry involvement in decision making, and whether "potentially conflicting" Electricity Commission objectives and roles are undermining performance of the sector.
 

The review will operate in two phases, the first look at regulatory and governance issues, while the second phase will address issues of electricity market performance.
 
“It may be that the review process throws up some obvious short term improvements that can be made and if so these will be acted on immediately,” Mr Brownlee says.

The technical advisory group will be chaired by Brent Layton, a senior fellow at the New Zealand Institute of Economic Research (NZIER). He has been a director or chairman in a variety of sectors, including the electricity sector.
 

The other five members of the group are Toby Stevenson, David Russell, Professor Lewis Evans, Miriam Deans and Stephen Franks.

Mr Stevenson was Contact Energy's former GM for electricity trading and risk management, and has also served as chairman of the New Zealand Electricity Market Rules Committee and has chaired the Electricity Commission’s Common Quality Advisory Group since 2004.

Mr Russell chairs the Electricity Commission’s Retail Market Advisory Group and is  spent 35 years at the Consumers' Institute.

Professor Lewis sits at Victoria University and is a lay member of the High Court concerning matters of commerce. He is the past Director of the Institute for the Study of Competition and Regulation. 

Stephen Franks, former ACT party member and lawyer has advised Transpower, several electricity distibution companies and the Government of legal issues and  assisted with the drafting of the Electricity Reform Act. 

Ms Dean, QC, specialises in commercial litigation and dispute resolution, with particular expertise in competition and consumer law.
 

The analysis of submissions and development of final recommendations will take place from August to September 2009, with an eye to preparing any necessary legislation by year end.

The report will not be considering the ownership and governance of SOEs, regulation of lines or any wider energy sector regulation, such as gas regulation.