Electricity, energy and the environment: Environmental performance assessment 1 March - 30 June 2004

Report summary

In the first of what will become an annual assessment, this report presents the PCE's findings on the environmental performance of the Electricity Commission. It covers the period from March 2004, when the Commission was set up, to June 2004, the end of the government's financial year.

The report contains 12 recommendations, including the need for the Commission to:

Other recommendations cover the need to review relevant legislation; to ensure the right environmental standards are in place across the electricity sector; and to improve data collection.

Commissioner's preface

Understandably, the Electricity Commission in its early days has concentrated on establishing itself, and ensuring the security of our electricity supply. Some increase in electricity generation has also been required, but the key to our future is in finding smart ways to do that.

Because our per capita use of electricity has grown over the past decade, it is clear we need much greater improvements in electricity efficiency than we have achieved to date.

I see some tremendous opportunities in distributed generation - in producing electricity more closely to where it will be used - and in energy efficiency. To make the most of those opportunities, the Commission needs to shift its focus away from big electricity generation and transmission projects to the demand side of the electricity sector.

I commend the Commission for its open and transparent mode of operating, and I believe it has made some good starts in reshaping how the sector develops.

I undertake these assessments under amendments to the Electricity Act 1992, and I have also used my powers under the Environment Act 1986 to examine other relevant environmental issues.