Electricity Reforms

The changes announced today by Minister Gerry Brownlee will not achieve anything for domestic consumers. Unless the new Electricity Authority is given full authority to regulate the situation will rapidly become worse than it is now.

Domestic consumers are now paying the long run marginal cost for generation development on their own and cross subsidising the non domestic consumers

It is essential that steps are now taken to introduce inverse step tariffs. This is the only way to ensure that all domestic consumers get an adequate supply to provide for their health and basic needs. This tariff would provide an adequate supply at an affordable cost for a home with its needs for heating, cooking, lighting and water heating. Homes with more luxurious appliances such a spa pools would pay a higher price for the excess.

It is time to grasp the nettle and rectify the problems of this industry before more people die unnecessarily and children’s development is retarded.

It has been clearly demonstrated that the domestic market can never be truly competitive as it is currently structured. Electricity supply is an essential service and must be treated accordingly. Currently the pricing of domestic supply is done on the Ramsey system which is basically for the supplier to charge any price they like.

ENDS

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