National proposed building a liquefied natural gas (LNG) terminal at Port Taranaki. Ostensibly for dry year support for the electricity generators. National were planning to have this signed up before the election. Act and NZ First appear to have quashed that. The outrage of consumers to being taxed yet again by the National government for their piss-poor 1990s energy management broke through?
Brian Easton at Pundit provides a clear overview on what is happening in out large generator / retailer market at present. Their implicit collusion on excessive pricing is profiteering and even using future capital to pay off investors rather than improve the cost of and efficiency usage of power.
New Zealand was always a odd place to have a aluminium smelter. Untapped hydroelectricity capacity at the bottom of the world. But thousands of kilometers from raw material sources. Tens of thousands of kilometers from the major markets. Now our ever rising electricity prices show that we really need that 13% of power in our electricity market rather than making aluminium.
The NZ Herald has a long history of opposing Maori resistance and supporting colonisation. It has always been right wing with a strong commercial focus & MO. Yesterday it censored news of Waitangi Day protests. Today an editorial spins in slippery style, for the Govt’s failing PowerCo sales.
At noon today Labour and the Greens jointly announced new energy policies. “NZ Power” is big and it’s bold. It will completely restructure the way the electricity sector is run, and result in lower power prices for both domestic and business consumers.
A joint Labour / Green announcement on plans for the electricity sector will be made on Thursday. My prediction is that the plan will be bold.
Apparently Meridian Energy are saying that there is unlikely to be a renewal of the Tiwai Point power contract. This would massively disrupt the value of sales of shares in state owned power companies by this government. However news is being released just before Meridian appears before a select committee. So I’m anticipating that it is a chicken little play to scare this weak-kneed government into an emergency wastage of taxpayers dollars – just like the Peter Jackson inspired Hobbit extortion.
Minister after Minister denied it, but it turns out that common sense is right. Private power companies charge more. Privatisation surely means that prices will rise. Is it even news when this government lies these days?
National rushed its Asset Sales Bill back into the House today. Stephen Joyce argued that it was to reduce debt, deepen capital markets, and invest in schools etc. One-off asset sales asset increase debt and if schools depend on flogging off more assets, we won’t get many more before the assets run out. The real reason for the sale is the middle one. Asset sales produce huge windfall capital gains for the buyers. They should be taxed.
Update: Bill went through 61-59 – 2 opposed from Maori Party. Cushion?
