But the one you're probably going to feel the most and the one that's getting the headlines today is your electricity bill. Electricity bills are rising nationwide. Line charges are increasing again from today. Average households will see a bill increasing by about $5 more every month. There's no single price increase. What households will actually see on their power bill will vary a lot depending on where you live, what plan you're on, and what retailer you're with. Some householders will see a small increase, some will see a large increase. Some are going to be hit by an extra $20 a month. Times that by 12 and see if you can afford that right now.
Just a quick reminder, there are about 28 different lines companies in New Zealand. They all have their own lines charges, so this is why the prices change depending on where you are. Why you will pay in some cases $5 extra a month, that's the average, you might pay less than that, but you might pay up to $20 a month more for your line charges. There will be also a 5 to 10% increase in power bills this year anyway because of, you know, power. And that's on top of the 12% we saw last year. So all this you have to say is terrible timing. We're in an energy crisis when it comes to fossil fuels, that's already raging. So this just does not feel fair, does it?
However, the Commerce Commission yesterday said the power price increase is justified. They need the money to improve the lines so that you can get the power into your house. So it's one of these scheduled increases that isn't dependent on the overall economy or how New Zealand Inc is doing, it's just things cost more. Terrible, terrible timing. The Commerce Commission yesterday said the power price increase is justified, but the Chair of the Commission said a little bit more. He said he hoped that something like electricity suppliers being split into generators and retailers would happen to create more competition. This is the quote from him: He said it's really important for us with our competition hat on to make sure that something a little bit like this happens, the splitting of the gentailers, so that the generators are not favouring their own retail arm when they're selling electricity, so that they can end out selling electricity at the lowest rate, the most competitive rate.
Splitting the gentailers was announced as Winston's election policy this year. Now it's getting support from the Commerce Commission. So my question for you could be, should all political parties now accept that this is probably a good idea and crack on with it, and would you like to see that happen?
Andrew Dickens is a broadcaster with Newstalk ZB. - where this article was sourced.
Just a quick reminder, there are about 28 different lines companies in New Zealand. They all have their own lines charges, so this is why the prices change depending on where you are. Why you will pay in some cases $5 extra a month, that's the average, you might pay less than that, but you might pay up to $20 a month more for your line charges. There will be also a 5 to 10% increase in power bills this year anyway because of, you know, power. And that's on top of the 12% we saw last year. So all this you have to say is terrible timing. We're in an energy crisis when it comes to fossil fuels, that's already raging. So this just does not feel fair, does it?
However, the Commerce Commission yesterday said the power price increase is justified. They need the money to improve the lines so that you can get the power into your house. So it's one of these scheduled increases that isn't dependent on the overall economy or how New Zealand Inc is doing, it's just things cost more. Terrible, terrible timing. The Commerce Commission yesterday said the power price increase is justified, but the Chair of the Commission said a little bit more. He said he hoped that something like electricity suppliers being split into generators and retailers would happen to create more competition. This is the quote from him: He said it's really important for us with our competition hat on to make sure that something a little bit like this happens, the splitting of the gentailers, so that the generators are not favouring their own retail arm when they're selling electricity, so that they can end out selling electricity at the lowest rate, the most competitive rate.
Splitting the gentailers was announced as Winston's election policy this year. Now it's getting support from the Commerce Commission. So my question for you could be, should all political parties now accept that this is probably a good idea and crack on with it, and would you like to see that happen?
Andrew Dickens is a broadcaster with Newstalk ZB. - where this article was sourced.
5 comments:
Its an old boys club so National will not support it.
labour enjoys the Socialist vista of 51% state ownership where uneconomic generation can be blended with near zero hydro to yield madness's like stored hydro madness in Otago
And then there was coal fired generation or more correctly, steam generated thermal electricity. Steam Generation that is centuries old , totally renewable , available in vast quantities around the world and so clean , new thermal generation in the middle of vast Japanese cities.
No need for a Transpower delivering electricity by pylon the length of a country , just constant cheap electricity right where it is needed without pollution issues because that is the Japanese way . Intelligent power generation, strict pollution requirements and continuous affordable electricity means jobs , productivity and stable business .
How dumb are the self described learned and intelligent.
This idea was not supported by the 8 comprehensive reports on the NZ electricity system over the last 20 years. Last year's one had other experts commenting too - no one thought this would make electricity cheaper. There is no written work I can find from any expert that explains how this might happen by separation for the whole retail market, for example. Transpower is driving costs up for the next four years after last year's big rise from it, and the generators are also investing a lot since it's been clear the smelter is staying. It is beyond me how discussion on this proceeds among politicians and businesspeople when they have no advice of any kind that says it will in any way ameliorate the current power price rise which is driven mostly by preparation for greater demand.
Clive, interesting points thanks. I've been watching the rhetoric against the power companies with interest as I have invested in them.
The problem is have if they get broken up are numerous - as i can't understand the likely outcomes, ie do you invest in the generation side or the retail side? Where is the demarcation point? I like the current setup. If you check- nz power cost is not expensive per kw compared to a lot of countries.
Also as you point out they have just completed capital raising to invest more in renewable.
Basil, Clive, what about nuclear pods? Probably one of the best and cost effective options. A pod would power a city the size of napier/ Hastings, easily. Certainly an option. My research suggests it would reduce energy bills. Keeping the whining left quiet. Unfortunitely, the lefties would hate this idea tho....despite not fully understanding its benefits. They would even find a way to start waving Palestine flags, introduce puberty blockers to kids again yet still not understand why power bills are destroying their wallets.
The left are a confused negative bunch, on one hand they demand cheap power, but have banned gas exploration and coal.....knowing we don't have enough power generation for this country. Go figure. These stupid people and their constant stupidity deserve the stupid outcomes their stupidity brings upon them!!
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