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

 

What Business Needs - Electricity Crisis Meeting

What Business Needs From Today's Electricity Crisis Meeting

Business New Zealand Chief Executive Simon Carlaw says businesses have some key outcomes they want from today's electricity crisis meeting.

The first is information. There is a lack of transparency in the generators' price-setting process, with no adequate explanation for the recent extreme spikes in spot prices. Decisions to push up prices by hundreds of percentage points at short notice need more justification than is currently given.

The second is a plan of action to deal with the current crisis now. With the good will of all players, this is possible. Droughts impacting elsewhere have been successfully managed by the involvement and contribution of many sectors.

Thirdly, we need to start looking longer term at the structure of the energy market, so we don't get into this mess every time there's a dry winter. We don't want price controls - that leads to situations like in California. But we do want an improvement to the electricity market structure.

The electricity reforms need to be revisited with the full force of hindsight. There are now fewer players than the structure was designed for, and the way the market is operating at present is not what the economy needs. There are a number of possibilities for getting better competition in the electricity market, and today's meeting should start considering them.

Ends


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Tourism: Employers Welcome Back Working Holidaymakers

Tourism businesses gearing up for the return of Australian visitors from next week will be relieved to learn that they will also have access to an offshore pool of much-needed job candidates, Tourism Industry Aotearoa says. Tourism employers around ... More>>

Commerce Commission: Latest Broadband Report Confirms Improved Performance Of Premium Fibre Plans

The latest report from the Commerce Commission’s Measuring Broadband New Zealand programme shows that the performance of Fibre Max plans has improved substantially. This follows a collaboration between the Commission, its independent testing partner, ... More>>

Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>

Commerce Commission: Cartel Conduct Now Punishable By Up To 7 Years’ Jail Time

Cartel conduct can now be punished with a term of imprisonment of up to 7 years, after the Commerce (Criminalisation of Cartels) Amendment Act 2019 came into effect today. Cartel conduct includes price fixing, market allocation and bid rigging (see ... More>>

Stats NZ: New Report Shows Impact Of Demands On Land In New Zealand

A new environmental report released today by the Ministry for the Environment and Stats NZ, presents new data on New Zealand’s land cover, soil quality, and land fragmentation. The land cover data in the report, Our land 2021 , provides the most ... More>>

ALSO:

Stats NZ: March Card Spending Rebounds Despite COVID

There was a lift in retail card spending in March following a fall in the lockdown-disrupted February month, Stats NZ said today. Seasonally adjusted retail card spending rose by $53 million (0.9 percent), compared with February 2021. Visit our website to read ... More>>

PwC: Outcome Of Review Into Air New Zealand Gas Turbines Business

Air New Zealand has received the report into its Gas Turbines business from independent external advisers PwC. Air New Zealand Chairman Dame Therese Walsh says the report identified a range of effective controls in the Gas Turbines revenue contracting ... More>>