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

Gordon Campbell:
On The Greens Proposal To Gradually Lift The Minimum Wage

Heading into the election home stretch, voters have a clear choice about the best way to help low and middle income New Zealanders. They can do so by gradually lifting the minimum wage (as the Greens propose) or by a small tax cut, as the government seems about to announce.

The minimum wage boost – by 75 cents an hour to $15 in December, and then by gradual annual increments to $18 an hour by 2017 – that the Greens are talking about is just one part of a packet of employment measures that would include scrapping youth rates and the 90 day trial period, introducing a redundancy package of four weeks, offsetting any abatement effect of the policy package for those receiving Working For Families, and finally… ditching the exception made by the government (during the Hobbit negotiations) for workers in the screen industry, which denies them normal workplace safeguards and entitlements. More>>

 

Parliament Today:

2014 General Election: Voting Period Begins

The first votes for the 2014 general election will be cast today, Wednesday 3 September, as advance voting begins ahead of election day on Saturday 20 September. More>>

Two Dead, One Injured: Suspect Charged After Ashburton Shooting

Russell John Tully has appeared in Christchurch District Court. Tully has been remanded in custody on charges of murder of Peg Noble and Leigh Cleveland and attempted murder of Lindy Curtis. More>>

ALSO:

John Key Press Conference: Ashburton Shootings, Judith Collins Inquiry

Prime Minister John Key has delayed the release of Nationals’ fiscal policy in light of this morning’s shooting at a Work and Income office in Ashburton... Key also answered questions about Judith Collins, and confirmed that independent inquiry will be held with regard to allegations made against Collins. More>>

ALSO:

Internet MANA: Georgina Beyer Rocks The Waka

“There is now, and always will be, a range of views about many issues within our movement and members are free to express them, but Georgina’s views on Kim Dotcom are not shared by the MANA Movement leadership or the vast majority of MANA members and supporters around the country” states MANA Candidate for Waiariki, Annette Sykes. More>>

ALSO:

IGIS Update: Inquiry Into Release Of NZSIS Information

The Inquiry would be conducted in private and individuals would appear before her separately over a period of more than a week. She does not intend to name those summoned to give evidence until her report is published. “I can confirm that all persons summoned will be required to appear under oath...” More>>

ALSO:

Gordon Campbell:
On John Key’s ‘Blame It On Judith’ Strategy

Right now, Prime Minister John Key seems intent on limiting the scope of any inquiry into his government’s dealings with Cameron Slater. The declared aim is to make that inquiry solely about Judith Collins’ behavior with respect to the Serious Fraud Office. More>>

ALSO:

Maori Council Lawyers' Statement: Supreme Court Decision On Maori Water Rights

“…the Supreme Court refused to give Pouakani people what they asked for, but may have given them something much, much better instead… the Supreme Court has questioned whether the Crown owns the River at all.” More>>

ALSO:

Gordon Campbell: On The Debate, And The Collins Accusation

Debating is a peculiar discipline in that what you say is less important than how you’re saying it. Looking poised, being articulate and staying on topic generally wins the day – and on that score, Labour leader David Cunliffe won what turned out to be a bruising encounter with Prime Minister John Key last night on TVNZ. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news