Labour/Greens have not publicly announced the detail of their policy Vaygor, because that detail will be developed with consultation.
If you look at the Labour website:Quote:
The main point of difference between you and I is that you state that Electricity injection prices will be dictated with NZ Power in the loop and I have never heard anything from Labour/Greens about this
http://www.labour.org.nz/nz-power
"Labour will fix this problem by introducing a new agency, NZ Power, to act as a single buyer of power for households."
Now you might think this allows other buyer seller relationships to exist outside of Government/Households. However if you keep on reading you will find this:
"Labour will create a new agency called NZ Power will act as a single buyer of wholesale electricity."
That means the single buyer will act for households, industry, government services and everything. The policy could not be expressed more clearly and succinctly than that
See above. No other non-residential bulk buyers - eventually. There may be a phasing in period where existing non-residential bulk buying contracts are honoured. If you have a single bulk buying authority you have the mechanics for government mandated price control (forced selling) if necessary.Quote:
and you won't provide the source. Labour/Greens have only ever referred to bulk-buying (not forced-selling) with NZ Power becoming one of the many non-residential bulk-buyers, so competition would still exist.
Correct. This solution will create another layer of bureaucracy and cost. That might mean it shouldn't be done. But it doesn't mean it can't be done.Quote:
That aside, either NZ Power insert themselves as middle men thus adding to the contracting complexity and cost of the whole set-up which already includes Transpower and the Lines Companies in addition to Generators and Retailers,
A single NZ Power can still control and match quantities in terms of demand and supply as seen by the grid nodes. At the household day to day level demand for power is not related to price. Households do not receive signals as to what the half hourly contract prices are at the wholesale level. So households cannot respond to pricing signals.Quote:
or NZ Power replaces the retailers thus removing Generator-Retailer swaps and adding huge risk to both themselves and the Generators, and both will need to price in this risk accordingly.
There will be consequences for sure, but there are consequences now. Much higher power prices for voters compared to big industrial companies that do not get a vote.Quote:
My view is that economically, either approach is self-defeating.
SNOOPY