Electricity pricing options

The BusinessNZ Energy Council (BEC) has welcomed options published today by the Electricity Price Review Panel.

BEC Chair David Caygill said the Review had provided a thorough and careful review of issues and options for improvement in electricity pricing.

"The Review has investigated concerns about how prices are set within the electricity sector and whether its structure is contributing to the problem of energy affordability.

"The Review has concluded that there are no obvious signs of excessive profits being taken by companies operating in the electricity sector, and that the sector’s structure is not a significant contributor to the issue of energy hardship.

"Energy affordability is a serious issue however, and the Review’s finding that the energy system alone can’t provide the whole answer is appropriate.

"Financial support for households in energy hardship should be part of a cohesive support network, including the tax and welfare systems, housing, and the performance of the economy as a whole.

"The Review has indicated it favours the future use of Government Policy Statements to guide the Electricity Authority regarding price fairness and affordability.

"BEC considers that this merits further consideration within the context of the Electricity Authority’s independence.

"BEC welcomes the overall thrust of the Electricity Price Review options and will contribute to the ongoing consultation aimed at a sound energy sector supported by wider policies that appropriately balance the energy trilemma."

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