New Poll Shows Majority Of Kiwis Back Government Intervention To Bring Down Power Prices

Former Energy Minister warns that without bold action, the current state of the economy may be as good as it gets.

A clear majority of Kiwis back direct government intervention into the energy sector if it would mean lower costs, a new poll shows.

In a poll of more than 1000 people conducted by Curia on behalf of Octopus Energy and the Auckland Business Chamber, 62 per cent of respondents said they would support the Government underwriting the cost of new electricity generation if it helped bring energy prices down.

That underwrite could, in the first instance, take the form of a long-term contract for new generation, covering the Government’s own energy use.

In addition, support remained high for separation of the generation and retail arms of the four gentailers, with 49 per cent of respondents saying that such a move would improve competition, versus 20 per cent saying it would not (31 per cent were unsure).

Auckland Business Chamber CEO Simon Bridges says the poll highlights that New Zealanders want bold action on energy.

“Whether it’s the rising household bills, or the ongoing stories of major employers having to shut up shop, costing thousands of jobs, Kiwi businesses and households have had enough,” he says.

“They expect the Government to confront the sector’s underlying problems and take steps that will bring down energy costs for all New Zealanders.”

With the Government due to make announcements on changes to the energy sector by the end of this month, Mr Bridges says that now is the time for leadership.

“Energy Minister Simon Watts has indicated that his intention is for serious reform – this poll shows that that’s exactly what Kiwis want.

“We hear the argument from some quarters that measures like operational separation of the gentailers would have a chilling effect on the market,” says Mr Bridges. “I’d argue that not intervening, and allowing New Zealand’s slide into de-industrialisation to continue, would do far more to turn investors off.”

Mr Bridges adds that last week’s dismal Q2 GDP results – where the energy-intensive manufacturing sector was the largest contributor to the overall GDP decrease – highlight the impact of high energy prices on the economy.

“If decisive action isn’t taken, what we’re going to see more and more is the economy going backwards – the current state of economic activity could be as good as it gets.”

The poll showed Kiwis are increasingly concerned about their power bills, with 55 per cent saying their power bill was more of a concern than last year, while only 5 per cent said it was less of a concern.

Power company profits were named as the single largest factor contributing to higher power prices by 29 per cent of those polled, followed by not enough competition (20 per cent), poor regulation (16 per cent) and inflation generally (13 per cent).

Curia’s polling took place between August 31 and September 2. The sample of 1000 eligible voters saw 700 interviewed by phone and 300 by online panel.

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