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

 


Benefits to Buller consumers from Pulse investment


Buller Electricity is pleased to release the results of an investigation into the benefits to consumers in the Buller region arising as a consequence of their investment in Pulse Energy Limited (Pulse). Buller Electricity commissioned Andrew Shelley an independent economist to undertake the investigation.

A primary driver for Buller Electricity investing in Pulse was a desire to encourage retail competition in the Buller region. Historically, consumers connected to the Buller Electricity network have faced some of the highest electricity prices in the country. In part it was assumed that this was a consequence of a lack of retail competition and therefore any improvement in the level of completion would provide benefits to consumers.

Buller Electricity Chairman Frank Dooley said that the investment in Pulse has been the focus of attention by a number of parties, but it is pleasing to announce that analysis by Mr Shelley indicates the benefit to Buller domestic consumers resulting from the investment can be estimated at $575,000 per annum or $4.76 million over 10 years. Mr Dooley also noted that this benefit does not include the benefits that may accrue to commercial consumers or to Buller Electricity as an investor in Pulse, such as future dividends or the increase in the capital value of shares owned.

"There has been a lot of talk in recent weeks about changes that need to be made in the electricity sector to benefit consumers" said Buller Electricity Chief Executive Erik Westergaard. "This report highlights how important it is for regulators to foster and sustain real competition, especially in the regions where competitive pressures may not be strong. The research by Mr Shelley has highlighted a possible problem with electricity markets in some areas of New Zealand. It has been known for some time that an absence of generation in a region and the risk of transmission constraints create a potential barrier to entry to retail electricity markets with the natural consequence being higher electricity prices for consumers in some regions. It is important when considering changes to the electricity market that policy makers reflect on the consequences that those changes have on regional communities as well as the broader national benefit tests that they may apply."

The benefit to a residential low user is estimated to be $120 per year while standard tariff residential customers have an estimated $177 benefit, reflecting their higher electricity consumption. "This is money that is going to be spent by consumers in the local community, benefitting local business as well, so the economic benefit to the region will likely be higher than the $575,000 estimate in the report" said Mr Dooley.

Mr Westergaard noted that this benefit was incremental to the price reduction that consumers may receive as a consequence of moving to the best retail price option for them.

Buller Electricity is the majority shareholder in Pulse holding approximately 59% of issued shares. Pulse currently has a market share of roughly 20% of ICPs on the Buller Electricity network.

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Wool Exports Jump To The Highest In More Than A Decade

New Zealand wool exports jumped to their highest level in more than a decade in June, aided by a lower currency and strong demand from China, the nation’s largest market. More>>

ALSO:

Surreal Estate: Home Values Rise At Fastest Rate In Seven Years

The latest monthly QV House Price Index shows that nationwide residential property values for July have increased 10.1% over the past year which is the fastest annual rate since 2007... The Auckland market has increased 18.8% year on year. More>>

ALSO:

New Employment Laws: Talley’s AFFCO Workers To Strike

The decision comes after the Talley’s owned company walked away from mediation last week and applied to end bargaining under the government’s new employment laws - the first such application since the law came into effect. More>>

ALSO:

Private Action: Employer Pleads Guilty Over Forestry Death

The CTU has always known that the death of forestry worker Charles Finlay was due to the poor health and safety practices of his employer... "The CTU, with the support of Charles’s family, needed to take this ground breaking private prosecution." More>>

ICT Innovation: Six NZ Finalists In World Summit Awards

The awards are a global showcase of 40 projects, across eight categories, with a special emphasis on those which show the benefits of information and communication technology for the development of communities. New Zealand has finalists in six of the eight categories. More>>

ALSO:

Final Frontier: Rocket Lab And NASA Sign Commercial Space Launch Agreement

Rocket Lab has signed a Commercial Space Launch Act Agreement with the National Aeronautics and Space Administration (NASA). The agreement enables Rocket Lab to use NASA resources - including personnel, facilities and equipment - for launch and reentry efforts. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news