Top Scoops

Book Reviews | Gordon Campbell | Scoop News | Wellington Scoop | Community Scoop | Search

 

NZ Power: New Labour-Green Electricity Proposal

NZ Power: New Labour-Green Electricity Proposal


Labour-Green Party Joint Press Conference - 18 April 2013

Scoop Audio+Video+Photos

The Scoop Team

Today Labour and the Greens unveiled a joint proposal to for electricity market regulation.

Labour's and the Greens' proposal involves the creation of a single buyer agency called NZ Power, which will purchase all electricity at a price based on the cost of production.

*******

*******

Click a link to play audio (or right-click to download) in either
MP3 format or in OGG format.

David Parker opined that currently markets are not truly competitive, meaning that major players can set very high prices for consumers. Electricity was centrally run up until 1987, when the state monopoly was divided up to create commercial competition, and residential prices have continuously risen ever since while commercial prices have fallen. The gap between residential and industrial prices in New Zealand is currently the second largest in the OECD.

Under the NZ Power setup, Labour estimates that power bills will fall by $230-$330 per annum for the average residential customer. The estimated economic boost would be around $450 million, creating around 5,000 jobs. Government oversight would also increase the likelihood of energy efficient electricity sourcing.

Both parties denied the release of the NZ Power proposal is related to the Mighty River Power sale. However, Labour and the Greens' show of support for the residential consumer's rights may push National into the politically unpopular position of defending comparatively wealthy electricity shareholders. In light of Simon Bridges' statement on how the NZ Power proposal is reminiscent of Soviet communism, it is unlikely that National will be convinced to support it. The scheme will most likely only be enacted if Labour and the Greens are elected next year, by which time the major power companies will be sold off, making efficiency and oversight more difficult.

Neither Labour nor the Greens have any plans to nationalise power companies.

The transcript of Labour Party leader David Shearer's speech can be accessed here, along with David Parker's speech here and Russel Norman's here.

*******


David Shearer


David Parker


Russel Norman

ENDS

© Scoop Media

 
 
 
 
 
Top Scoops Headlines

 

Scoop HiveMind Project: Universal Basic Income - Are We Up For It?

This is an opportunity for you as one of the 4 million potential funders and recipients of a Universal Basic Income to collectively consider the issue:
1. Is UBI is a desirable policy for New Zealand; and
2. How should a UBI system work in practice. More>>

ALSO:

Lyndon Hood: National Announces Plan To Hit Youth With Big Mallets

The National party has announced its youth justice policy, which includes a controversial plan for recidivist serious youth offenders to be hit over the head with a comically large rubber mallet. More>>

ALSO:

Lyndon Hood: This ->

It's been brought to my attention that Labour's new campaign slogan is "Let's do this". A collective call to action. A mission. I myself was halfway out of the couch before I realised I wasn't sure what it was I was supposed to do. More>>

ALSO:

Scoop Hivemind Report: What New Zealanders Think About Affordable Housing

Ordinary citizens have had very few venues where they can debate and discuss as to what they believe has led to the crisis in affordable housing and how we might begin to address this. The HiveMind on affordable housing was about redressing the balance. More>>

ALSO:

New Hivemind Exploration: Opening The Election - Freshwater Quality

This is an opportunity for you as one of the 4 million guardians of our common water resources to help us find mutually agreeable solutions to the critical task of collectively managing these resources for health and sustainability. More>>

ALSO: