Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Electricity SOEs Have Behaved Appropriately

Treasury Confirms Electricity SOEs Have Behaved Appropriately

Advice the government has received confirms that the three state-owned electricity generators have acted entirely appropriately during the winter power shortage, the Minister for State Owned Enterprises Mark Burton said today.

Advice to Mark Burton and Finance Minister Michael Cullen from Treasury and CCMAU, along with information provided by Mighty River Power, Genesis Power and Meridian Energy, has all been released to the National Party under the Official Information Act.

"One would hope that being in receipt of this information will convince Bill English, Lockwood Smith and others to desist from their irrational attacks on the electricity SOEs," Mark Burton said.

"Dr Cullen, Energy Minister Pete Hodgson, and I have repeatedly told the House and the public that claims of profiteering are untrue.

"These papers confirm that there is no evidence that SOEs have acted irresponsibly. Meridian Energy and Mighty River Power have not benefited from high wholesale prices, as they have cut output to the bare minimum required to cover hedged contracts and retail commitments.

"Genesis Power has used its reserve thermal capacity to increase output. This resulted in profit running ahead of forecast for a short period prior to August 1st. Treasury and CCMAU note that this does not reflect profiteering by Genesis. Rather it reflects the return Genesis should receive for maintaining the electricity market's reserve generation capacity.

"In the words of Treasury: "If we expect their capacity to be maintained as a safeguard, to ensure supply in periods of low hydro capacity, it is important that generators can benefit when prices are high."

"There are imperfections in the electricity market created by Max Bradford, and this government is taking steps to fix them.

"But the behaviour of the electricity SOEs has been entirely consistent with their responsibility to act commercially and as good corporate citizens," Mark Burton said.

Ends

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Peters/Ardern Triumph

There are a lot of good reasons to feel joyful about this outcome. It is what so many young voters – the best hope for the country’s future – wanted.

Far more important than the implications for the Economy Gods ( is the dollar up or down? ) last night’s outcome will also mean many, many vulnerable New Zealanders will have a better life over the next three years at least.

Yet the desire for change was in the majority, across the country..>>>More


Reaction

Labour on its agreement |Peters: Post-Election Announcement Speech | Greenpeace “cautiously hopeful” about new Government | ACT - Madman on the loose | E tū ecstatic | Chamber welcomes the outcome | Greens on their joining Govt | EDS welcomes new govt | Immigrant groups worry | Feds ready to engage new coalition government | Labour Ministers of the Crown announced

 

Climate: Increasing Greenhouse Emissions Hit NZ

New Zealand is seeing impacts of excess greenhouse gas emissions in our climate and oceans, according to the latest national report from the Ministry for the Environment and Stats NZ about the state of the atmosphere and climate…More>>

ALSO:


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>

ALSO:

Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>

ALSO:

Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>

ALSO:

Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>

ALSO:

Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>

ALSO:

Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election