Consumers win big in power re-jig 

Source: ONE News

Consumer New Zealand says householders are the big winners of the government's planned shake-up of the energy sector.

Energy Minister Gerry Brownlee announced on Wednesday sweeping changes across the electricity industry aimed at generating more competition to bring down prices.

Power companies are also being forced to pay consumers the next time there's a power shortage.

It will be one of the biggest shake-ups of New Zealand's electricity sector in a decade.

Consumer New Zealand's Chief Executive Sue Chetwin says the changes are long overdue.

"It is a big win for consumers because it's finally been admitted that there is no competition in the market and that consumers have been gouged over many years now.

"It's probably up to the future to see how the competition is actually going to work but finally the state owned enterprises are going to be set up in a competitive way."

But some retailers say the proposed re-jig may actually raise electricity prices and reduce the security of power supply.

The chief executive of Powershop, Ari Sargent, says there is a risk the proposed changes will  contribute to higher prices .

Sargent says a lack of competition in the market needed to be addressed, but the planned re-shuffle of generation assets could be a mistake.

The changes will be introduced to Parliament as the Electricity Industry Bill on Friday.

What do you think about the changes? Have your say on the messageboard below.

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te retard ; 2009-12-10 @ 00:46 NZDT  

Forget about the hope of Brownleee energy reform bringing you cheaper electricity prices. This WILL NEVER happen. Previous Nat govt promised the same thing when they deregulated the electricity market. The sad truth is that there is no competition in the electricity generation supply market. In a dry year, they all push up prices so no matter which supplier you turn to, you will get hit just the same.

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Straight Shooter ; 2009-12-10 @ 00:23 NZDT  

Part of the answer to that question is the same reason why dairy products are also expensive - the products fetch a higher price the further away the market. The other reason for the high price is that the New Zealand electricity industry has 3 parts - North Island hydro, South Island hydro and North Island thermal. Each of these 3 areas of generation used to cover eachother during seasonal flows. By splitting ECNZ into 3 the risk increases prices and there is less incentive for new generatio

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ErikBlood@xe ; 2009-12-09 @ 22:24 NZDT  

Sorry to shout, but the HUGE mistake the powers that be are making is cloaked as the benign sounding 'PM10' bill. Wee particles produced by wood burners are being blamed. What about diesel vehicles? As a result heat pumps which rely on old carbon fossil fuels are being promoted rather than the good old chippy. Short cycle carbon is renewable and sustainable. NZ is desperately short of power already. Easier and better to plant more trees than dig coal. Wrong policy, lets fight it!!

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Arty ; 2009-12-09 @ 19:36 NZDT  

the further electricity is transmited,the greater the loss and the higher the cost . Why should I pay as much for my electricity as someone in Auckland when I live almost in the shadow of one hydro station and two geo thermal plants Cheaper power@source will see gravitation of bussiness and people to genration source and eliminate need for expensive pylons across Waikato farmland

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