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Nats’ ETS claims on power misleading again

David Parker
Spokesperson for Finance

22 April 2013

Nats’ ETS claims on power misleading again

John Key is wrong yet again with his claims that Labour’s power policy will see a rise in power bills due to the emissions trading scheme – the truth is in future the ETS will have less of an impact on power bills than it does now, says Labour’s Finance spokesperson David Parker.

“Under Labour’s power plan, all Kiwis will see their power bills reduced by $230 - $330 a year. Under National they will go up. National knows that matters to New Zealanders and is desperate to undermine the policy with a series of misrepresentations.

“Under Labour’s proposed changes generators will be paid for their actual costs. The ETS will only apply to electricity production that actually generates carbon, when 75 per cent of production is low carbon. Currently the carbon price impacts on other electricity generation.

“At the moment, electricity is traded in a spot market where the price is set by the generator who supplies the most expensive electricity, this is frequently gas generators. That price, which includes ETS carbon costs for gas, is paid to all generators including hydro, which has no carbon content.

“That means gas and coal generators’ carbon costs are incorporated into the price paid to hydro, wind and geothermal generators, despite the fact that they have zero or low carbon emissions.

“Under Labour’s policy only the companies whose generated electricity emits carbon will be able to charge for it. Carbon-free sources such as hydro will not be able to lift their prices because of carbon.

“This is yet another example of why Labour’s proposals are better and will reduce power bills. The system must be changed.

“Under National power bills will keep skyrocketing. National has no electricity credibility so they are resorting to misleading New Zealanders,” says David Parker.

ENDS

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