Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Govt's Handling Of Electricity Shortage Commended

Government's Handling Of Electricity Shortage Commended

"The government is to be commended for its handling of the recent electricity shortage", the executive director of the New Zealand Business Roundtable, Roger Kerr, said today.

"The shortage put severe pressure on many businesses and it is a relief that more normal conditions are now expected.

"The reality is that when electricity supplies are scarce, they must be rationed either by price increases or by cuts in service. Energy minister Pete Hodgson acted coolly in allowing the imperfect market he inherited to work. Calls for price controls and profit rebates were misguided.

"In the circumstances it seems the electricity market structures have performed well", Mr Kerr said. "There will now be time for careful reflection on lessons to be learned by market participants and users alike.

"One important lesson from experience in New Zealand and elsewhere is that markets and competition can be undermined by ill-considered regulations and extensive government ownership. During the shortage state-owned companies increased their presence in the industry. True competitive conditions are not likely to be established while this situation prevails. The case for reducing the government's domination of the industry is a major issue that needs to be addressed. Another is whether there are undue constraints, for example under the Resource Management Act, on building new capacity", Mr Kerr concluded.


© Scoop Media

Business Headlines | Sci-Tech Headlines


ScoopPro: Helping The Education Sector Get More Out Of Scoop

The ScoopPro professional license includes a suite of useful information tools for professional users of Scoop including some specifically for those in the education sector to make your Scoop experience better. More>>

Big Tax Bill Due: Destiny Church Charities Deregistered

The independent Charities Registration Board has decided to remove Destiny International Trust and Te Hahi o Nga Matamua Holdings Limited from the Charities Register on 20 December 2017 because of the charities’ persistent failure to meet their annual return obligations. More>>

57 Million Users' Data: Uber Breach "Utterly Preventatable"

Cybersecurity leader Centrify says the Uber data breach of 57 million customer and driver records - which the ride-hailing company hid for more than a year - was “utterly preventable”. More>>

Scoop 3.0: How You Can Help Scoop’s Evolution

We have big plans for 2018 as we look to expand our public interest journalism coverage, upgrade our publishing infrastructure and offer even more valuable business tools to commercial users of Scoop. More>>

Having A Cow? Dairy Product Prices Slide For Fourth Straight Auction

Dairy product prices fell at the Global Dairy Trade auction, retreating for the fourth straight auction amid signs of increased production... Whole milk powder fell 2.7 percent to US$2,778 a tonne. More>>


Statistics: Butter At Record $5.67/Block; High Vegetable Prices

Rising dairy prices have pushed food prices up 2.7 percent in the year to October 2017, Stats NZ said today. This followed a 3.0 percent increase in the year to September 2017. More>>


Science: New Research Finds Herbicides Cause Antibiotic Resistance

New University of Canterbury research confirms that the active ingredients of the commonly used herbicides, RoundUp, Kamba and 2,4-D (glyphosate, dicamba and 2,4-D, respectively), each alone cause antibiotic resistance at concentrations well below label application rates. More>>