What a joke
1. Labour could have and should have done this while already in government. No need to wait for next election
2. If Tiwai get reduced Transmission costs then other consumers have to pick up this cost. There is no other option
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New Zealand taxpayers need only assume the prior position. :D
Financially I'd probably benefit but I won't pretend this would in any way represent a good deal for New Zealanders. Gives credence to those who say that in practical policy terms there is little difference between the two main parties.
New information on how the Lake Onslow scheme coulf affect electricity prices.
https://www.rnz.co.nz/news/political...e-hikes-for-nz
Some research I have just completed on the effect on prices if Onslow had been in operation right through the time of the market since 1996 indicates that it would have been neutral. Some low priced years would have been higher, and all high priced years would have been lower.
From a fiscal perspective this just does not to make a lot of sense, especially if construction costs are likely to exceed $4B. From a political perspective, I suspect it gives voters the warm fuzzies, which is all that really matters for a project like this to been green lighted.
Surely all the listed electricity generators will continue to move higher now the risk of tiwai closing next year is significantly reduced, and interest rates will continue to drop increasing the attractive yields relative to a risk free returns in the bank.
I'm remaining dubious of a successful deal between a newly elected Labour govt and the smelter operators.