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

 


NZ’s Electricity Needs – Tomorrow, and Today

25 October 2006.

New Zealand’s Electricity Needs – Tomorrow, and Today.

The Canterbury Manufacturers’ Association says that comments made by ISCR researcher Richard Meade last week regarding New Zealand’s electricity system failed to take future requirements and basic cost drivers into consideration.

“To say that “shortages” don’t happen in a “market” when there are shortfalls in the electricity supply is not an answer that will keep the lights on”, says Chief Executive John Walley. “Unfortunately, this ‘just-in-time’ behaviour will only be effective for so long. After that, you either find sustainable and affordable long term solutions or you put up with price increases, lower safety margins and power cuts”.

Mr. Walley says that New Zealand has remained in the lower end of the OECD in terms of pricing as a result of its historical reliance upon large, cheap hydro generation as the major contributor to providing electricity. As hydro has given way to more costly sources of energy such as oil and geo-thermal resources, prices have risen and Mr. Walley points to providers such Contact Energy and Genesis increasing margins.

“High prices and bloated margins to are the reality of the current situation being ‘handled well by the market’. New Zealand has been fortunate in that a solid and reliable foundation was built in the 70’s and 80’s. Since then we have been living on past investments and it is time for system-wide transmission upgrades, and investment in significant hydro generation. Sooner or later the Government and its electricity proxies must acknowledge this and move away from ‘band-aid solutions’ towards building a secure low cost future for electricity”.

“Without generation and transmission upgrades there will be cuts and outages in the near future. When this happens, Governments will be punished at the ballot box.” Mr. Walley. “In the meantime, prices will continue to rise and, increasingly, the lights will be out.”

ENDS


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

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: 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>>

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:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news