The final touches are being sorted.
Simon Watts calls them fundamental. He refers to the last time it was this major as being in the 90's.
So are they going to split the gentailers?
The Government's history would suggest no. They have been talking big on banks and supermarkets, and they've made plenty of announcements, but little has actually happened.
Why would this be any different?
This Government has also argued, rightly, that business likes consistency. When the last lot talked about Onslow and the lake and the hole in the ground, the industry stopped investing.
So would splitting the big players not cause the same trouble?
But in the report that is driving the Government's thinking we have seen an astonishing increase in the basic power bill.
In 2021 we spent $4.4 billion. The next year was $4.5 billion. In 2023 we spent $4.8 billion on power bills. In 2024 it was $5.2 billion.
So it's increased from $4.4 billion to 5.2 billion, and you wonder why you don’t have any spare cash.
On average the basic household power bill since 2023 has gone up $400 each and every year.
We can explain some of it on renewables. We need investment but we still haven't closed the gap. We still panic in winter, and that’s before you get to all the AI and data centres that will presumably suck us dry.
By the way, on the renewable front, Contact Energy are looking at pulling more water out of Lake Hawea. That’s if they can get past the locals, who of course hate it.
In that is part of the New Zealand problem – nimbyism. You can't moan about the bills and also moan about the solutions.
Everyone wants utopia, but don’t want to pay for it, or have any of it happen in their backyard.
So, stand by. Maybe it's fundamental, maybe it's a government looking to spin some more PR.
I think though what we all agree on is we need more power, and the damage the current scenario is doing to the economy can't go on.
Mike Hosking is a New Zealand television and radio broadcaster. He currently hosts The Mike Hosking Breakfast show on NewstalkZB on weekday mornings - where this article was sourced.
Why would this be any different?
This Government has also argued, rightly, that business likes consistency. When the last lot talked about Onslow and the lake and the hole in the ground, the industry stopped investing.
So would splitting the big players not cause the same trouble?
But in the report that is driving the Government's thinking we have seen an astonishing increase in the basic power bill.
In 2021 we spent $4.4 billion. The next year was $4.5 billion. In 2023 we spent $4.8 billion on power bills. In 2024 it was $5.2 billion.
So it's increased from $4.4 billion to 5.2 billion, and you wonder why you don’t have any spare cash.
On average the basic household power bill since 2023 has gone up $400 each and every year.
We can explain some of it on renewables. We need investment but we still haven't closed the gap. We still panic in winter, and that’s before you get to all the AI and data centres that will presumably suck us dry.
By the way, on the renewable front, Contact Energy are looking at pulling more water out of Lake Hawea. That’s if they can get past the locals, who of course hate it.
In that is part of the New Zealand problem – nimbyism. You can't moan about the bills and also moan about the solutions.
Everyone wants utopia, but don’t want to pay for it, or have any of it happen in their backyard.
So, stand by. Maybe it's fundamental, maybe it's a government looking to spin some more PR.
I think though what we all agree on is we need more power, and the damage the current scenario is doing to the economy can't go on.
Mike Hosking is a New Zealand television and radio broadcaster. He currently hosts The Mike Hosking Breakfast show on NewstalkZB on weekday mornings - where this article was sourced.
3 comments:
It could be Luxons biggest battle is with the National Party.
Luxon identified and promoted hitherto low profile National mps to become stellar ministers.
The exception is Nicola Ardern, oops Willis. Luxon would never promote and maintain an mp with such low intelligence and integrity without coercion.
Luxon stated publically food prices are too high in NZ. Then came a deluge of pen for hire Luxon abuse.
Farrars kiwiblog moderators encouraged the Luxon abuse, which I thought strange given Farrar is in the employ of the Nats. Could it be the same Nat elders who insisted on Willis, also gave Farrar the green light?
Since Willis proudly announced the 2 supermarkets credited with making Australian families' food bills $10,000 a year cheaper than NZs didn't participate in her time and money wasting 2 year survey; the pen for hire Luxon abuse has stopped!
Subsidise solar panels and batteries! But the gentailers wouldnt like that.
It'll be interesting to see if Simon does anything with the electricity market. I have worked on both sides of it, in generation and for a major consumer so I've seen how supply can be manipulated to rort prices. Over the years many commentators have criticized it, and I totally agree with them.
Thanks to the previous govt., generators have been able to avoid to much criticism by investing in new generation, of the renewable kind, as promoted by Jacinda and her eco-loony friends. The generators know only too well that when the wind don't blow and the sun don't shine there will still be supply shortages and that will lead to the high spot prices they love to see, but they can hold up their hands and say that they only did what they were asked to do, it's not their fault.
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