The government has backed down on paying for its LNG import terminal through a levy, and is imposing steeper fines on power companies to shore up energy supply.
The government has also agreed to proceed with a terminal, and the Ministry of Business, Innovation and Employment is beginning consultation on new regulations for power companies' dry year supply backups.
Energy Minister Simeon Brown announced the moves in a speech to the Auckland Business Chamber on Tuesday morning.
LNG power bill levy scrapped
"I have asked MBIE (the Ministry of Business, Innovation and Employment) and NIFFCO (the National Infrastructure Funding and Financing company) to work through the detail of how the facility will be paid for, including engaging with the gentailers on a fair funding model, and will have more to say in due course," Brown said.
