Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search

 


Electricity Authority's false "analysis"

29 January 2014

Electricity Authority's false "analysis"

By Molly Melhuish, energy analyst

The Electricity Authority’s so-called analysis of electricity costs is based not on fact, but a simplified model. To prevent the price crashing to low levels, the model assumes demand rises every year. In fact, demand has fallen over the last five years.

The Authority asserts that residential prices were subsidised in the past. This is not based on the dictionary definition of subsidy – a payment from public funds to reduce prices. It is based on New Zealand’s regulation that allows electricity suppliers to maximise their profits at the expense of captive consumers.

The analysis says residential consumers are expensive to supply because they have higher peak demands. But regulation is suppressing initiatives that could reduce electricity demand – in particular, smart meter tariffs that would signal times when costs are high. Even ripple control of hot water, which controlled costs in the past, is now little used.

New Zealand’s electricity regulation is in denial – we’re not the only country where demand is falling.  Australia, UK, and some US states have demand falling in response to rising prices. Solar electricity is cheaper than new electricity supply, or soon will be.

Overseas there is widespread evidence that the industry faces a death spiral. As more consumers power down or switch off, prices to the remaining consumers have rise to meet the expectations of shareholders. New Zealand’s evidence is so scant and untrustworthy that the Authority’s work has to quote the Australian evidence.
Overseas, the electricity industry is transforming from the dinosaur large-scale supply model, to a mixed industry where consumers take initiative to reduce their power bills, using alternative energy sources whenever they are cheaper than electricity.

Unless the New Zealand industry faces the facts instead of hiding behind incorrect models, they will face the death spiral instead of transforming into a more efficient and affordable electricity system.

Ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Patience: Drive Safe

Be patient before passing is the AA's message for drivers this Labour weekend.

"People taking crazy risks to get past other vehicles is one of the most dangerous things on the road,” says AA spokesperson Dylan Thomsen.

“The weather is looking good for the long weekend so the roads will be busy. Unfortunately, that also increases the chances of people getting frustrated and trying a risky passing manoeuvre. When they get past, there will probably be more traffic up ahead anyway so it won’t get people there faster.” More>>

 
 

Parliament Today:

Employment Relations Bill: Govt Strains To Get Tea Break Law Through

The Government has been left with egg on its face - failing to get its much-vaunted, but hugely unpopular, meal break law passed in the first week of its new term, Labour spokesperson on Labour Issues Andrew Little says. More>>

ALSO:

Guns: Police Association Call To Arm Police Full Time

"The new minister gave his view, that Police do not need to be armed, while standing on the forecourt of parliament. The dark irony was that the interview followed immediately after breaking news of a gunman running amok in the Canadian parliament in Ottawa..." More>>

ALSO:

Gordon Campbell: On The Tokenism Of New Zealand's Role Against Islamic State

Our contribution against IS will be to send SAS forces to train the Iraqis? That’s like offering trainers to General Custer just as the 7th cavalry reached the Little Big Horn. More>>

ALSO:

Scoop Business: Shell And Todd Caught Drilling Without Approval

Multi-national oil company Shell’s New Zealand arm and local energy giant Todd Energy have breached the new law governing New Zealand’s Exclusive Economic Zone, the Environmental Protection Authority says in an Oct. 10 document released by the Green Party. More>>

ALSO:

Gordon Campbell: On Pharmac, Gough Whitlam And Sleater-Kinney

We’re not at the outset of these negotiations. The outset was six years ago, and negotiators were hoping to have some sort of ‘framework’ deal finished in time for the APEC meeting in a few weeks’ time. These ‘extreme’ positions are what we’ve reached near the intended end of the negotiations… More>>

ALSO:

PM Of Many Hats: Questions, No Answers On Whale Oil

Dr RUSSEL NORMAN (Co-Leader – Green) to the Prime Minister: How many times since November 2008 has he spoken with blogger Cameron Slater on the phone and how many times, if any, has he texted him?
Rt Hon JOHN KEY (Prime Minister): None in my capacity as Prime Minister. More>>

ALSO:

Aussie Investigation Dropped: Call On Minister McCully To Pursue The Case Of Balibo Five

West Papua Action is deeply concerned at the lack of any clear outcome from the Australian Federal Police inquiry into the 1975 deaths of the ‘Balibo Five’ including NZ journalist Gary Cunningham. More>>

ALSO:

'Feed The Kids' Bill: Metiria Turei To Lead Fight On Feeding Hungry Children

Green Party Co-leader Metiria Turei is urging all political parties to support the Feed the Kids Bill which she inherited today from Mana leader Hone Harawira. More>>

ALSO:

Parliament Today: State Opening Of Parliament

The House sat at 10.30am on Tuesday before MPs were summoned to hear the Speech from the Throne in the Legislative Council Chamber. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news