NIWA Gets It Wrong And The Cost Is Huge
High electricity prices can be blamed in large measure on grossly inaccurate forecasts by NIWA, ACT MP Gerry Eckhoff said today.
"The climate 'experts' at NIWA told New Zealand we could look forward to a mild winter.
"The electricity industry has been caught out by one of the coldest and driest winters in recent memory. This illustrates that climate forecasting is a hugely imprecise 'science'.
"Electricity retailers obviously obtain all relevant information when deciding how much to 'hedge' their prices.
"The electricity market is working well despite blatantly wrong information from NIWA. The signal being sent - too late - is to conserve electricity, through higher prices. When the rains come, prices will fall. Government interference as projected by the new Electricity Bill will achieve nothing but deepen this crisis.
"How could NIWA get it so wrong? The cost of sending wrong signals to the marketplace is huge.
"The forecast for NIWA is dire. The 'experts' must accept a large measure of blame for the electricity industry crisis, and can look forward to much less confidence from New Zealanders," Mr Eckhoff said.