Uncertain Energy Future Does Nothing For Growth

4 September 2002

Uncertain Energy Future Does Nothing For Growth

The growing uncertainty over primary energy supplies for electricity generation does not bode well for growth, says Business NZ.

Chief Executive Simon Carlaw says the depletion of the Maui gas field, the cancellation or delay of new generation projects and conflicting advice on exactly how much gas is available are sending very negative messages to potential new investors.

"Secure and stable electricity supply is critical to attaining our growth goals. The current electricity market arrangements do not appear to be triggering adequate responses to the situation, and it is clear that recent policy moves in terms of new renewable energy technologies will not be sufficient on their own to fill the looming energy shortfall.

"Today's briefing to the Energy Minister by the Ministry of Economic Development makes it clear that by 2005, existing generation is unlikely to meet demand in a dry year and that electricity and gas prices are likely to rise.

"It's imperative that the Minister of Energy gets dialogue going with officials and the business community to try and find some practical solutions to an increasingly urgent problem," Mr Carlaw said.

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