Vector Limited today welcomed the release of the Government’s Draft New Zealand Energy Strategy to 2050 saying that the energy sector required a long-term planning horizon with clear policy objectives.

“As a multi-utility infrastructure provider and an operator of long-life assets, Vector has consistently argued the need for a long-term energy policy and a stable regulatory environment around energy investment and welcomes the discussion documents the Government has released today as a step in the right direction,” Vector Chief Executive Mark Franklin said.

“We are aware that this is only one piece in a much bigger picture which will be further revealed by the Government in the near future, including other climate-related initiatives. We will be watching these with equal interest as they will collectively influence our future planning.

“Vector broadly supports the general thrust of the draft energy strategy, particularly where there is reliance on market rather than regulatory mechanisms to reduce emissions, and the focus on demand-side solutions to promote energy efficiency.”

Mr Franklin said that although still provisional, the strategy supports work Vector is doing to develop commercial and technical solutions for improved energy efficiency, demand response and more secure electricity supply in Vector’s network regions.

“Vector welcomes the strategy’s emphasis on the need to maintain security of supply while also promoting efficient pricing and environmental protection.

“A lot of development and detailed work is required to give life to the strategy and Vector will be engaging closely in the consultation and submissions process to help ensure that the right balance is achieved.

“Vector, as a significant supplier of gas, will also be taking a close look at the implications arising from the move away from thermal power generation, but is encouraged that the Government recognises a key future role for gas in New Zealand energy supply composition.

“Vector takes an active interest in the policy-making process around energy and looks forward to contributing to the debate,” Mr Franklin said.