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

 


Problems facing New Zealand's electricity system

Canterbury Manufacturers’ Association.
Media Release.
16 June 2006.

The Canterbury Manufacturers’ Association says that the power outages in Auckland and the central South Island on Monday are a further reminder of the problems facing New Zealand’s electricity system and the increasing need to find a solution.

The Association points to the fact that this was only the first winter storm of the year and says that New Zealand must be able to withstand one fault in the electricity system without incurring total failure. The CMA says that the debate has already begun as to where the responsibility lies for the blackout with even the Prime Minister demanding answers. The finger-pointing however must not overshadow the loss of millions of dollars incurred by the manufacturers and business communities in both regions and the potential for ongoing crisis after crisis that in the country’s electricity sector.

“It does not matter who is to blame. This problem has been brewing a long time and involves all shades of politics in New Zealand. It’s time to stop talking and actually implement some action to rebuild our electrical system into the comparative advantage it once was.” said John Walley CEO Canterbury Manufacturers’ Association.

There is general agreement within the industry that the reformed market, although better in some areas than the past, is not perfect. New Zealand’s generating companies are effectively given incentives when our electrical system is operating in marginal shortages, or the assets are worked hardest and stretched. Redundancy within the supply and system leads to less than optimum returns to the electricity system asset holder, resulting in high prices and blackouts for the consumers. Due to the adopted just-in-time mentality and ‘leave-it-to-the-market’ stance, system efficiency for generation, transmission and reticulation is now a myth. The savings achieved through just in time investments are wiped out in seconds when the power goes out by the direct losses and the incalculable damage this does to our international image. At the moment New Zealand can only dream of the low price reliable electricity system that we used to have as a comparative advantage against our overseas trading competitors. This has been sacrificed to the electricity reforms and cannot be rebuilt by the existing structure.

The CMA says that the Government needs to take leadership in the energy debate and set down some bold and decisive policies to supply electricity where and when it is needed and cut through the incremental approach that the reforms have fostered. Focus on how we can yet again achieve a reliable low cost supply of electricity, not on the often esoteric abstractions and economic fixes to economic problems.

Let us learn from our past mistakes and not wait to experience even more blackouts before we finally see the light.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news