Nat/act/nzf 2023

[moka]

I don't think you are correct. High Electricity prices because of the partial sale? You gotta be kidding.

I went back to my student days and had a look what my electricity bill was.

Power is cheaper now on a real basis (obviously not nominal) than it was in the 90's. As is petrol and diesel, but people conveniently forget that.

Kiwi households paying 'almost 80 per cent more for power today than in 1990' after adjusting for inflation - 11 Sep, 2018

https://www.nzherald.co.nz/nz/kiwi-households-paying-almost-80-per-cent-more-for-power-today-than-in-1990/X2XOZM3Z2VBRT3Z2AYMIFOAKXY/#google_vignette

A discussion document for the first phase of the Electricity Pricing Review has this afternoon been released by Energy and Resources Minister Megan Woods.

It looked at competition and efficiency, reliability, fairness and affordability for consumers and the industry.
The document finds electricity could be more affordable for Kiwis, with 103,000 households spending more than 10 per cent of their income on power, and when household costs are included, that figure jumping to 175,000.
It also finds "nothing to suggest grid operator Transpower or distributors, as well as retailers, are making excessive profits".

The document points to a two-tier market forming where those who actively shop around for better deals benefit from competition, while those who don't, end up paying higher prices.
Commercial businesses are paying 24 per cent more than almost three decades ago, compared to industrial users who are paying 18 per cent less now compared to then.

[moka]

I don't think you are correct. High Electricity prices because of the partial sale? You gotta be kidding.

I went back to my student days and had a look what my electricity bill was.

Power is cheaper now on a real basis (obviously not nominal) than it was in the 90's. As is petrol and diesel, but people conveniently forget that.

https://croakingcassandra.com/2018/09/14/electricity-prices/

But when the electricity review document was released the other day, I decided to dip into some numbers and see what I could find out. As has been highlighted repeatedly, there has been a big shift over recent decades such that residential user (real) power prices have risen substantially while commercial and industrial (real) prices have been pretty flat or even falling.

It is hard not to think that if our politicians had not been so determined to keep Tiwai Point open, and so determined to rapidly drive up our population in a unpropitious location (and despite the complete lack of evidence of resulting productivity gains), electricity prices for all other users would be rather lower.

[Baa_Baa]

Kiwi households paying 'almost 80 per cent more for power today than in 1990' after adjusting for inflation - 11 Sep, 2018

https://www.nzherald.co.nz/nz/kiwi-households-paying-almost-80-per-cent-more-for-power-today-than-in-1990/X2XOZM3Z2VBRT3Z2AYMIFOAKXY/#google_vignette

A discussion document for the first phase of the Electricity Pricing Review has this afternoon been released by Energy and Resources Minister Megan Woods.

It looked at competition and efficiency, reliability, fairness and affordability for consumers and the industry.
The document finds electricity could be more affordable for Kiwis, with 103,000 households spending more than 10 per cent of their income on power, and when household costs are included, that figure jumping to 175,000.
It also finds "nothing to suggest grid operator Transpower or distributors, as well as retailers, are making excessive profits".

The document points to a two-tier market forming where those who actively shop around for better deals benefit from competition, while those who don't, end up paying higher prices.
Commercial businesses are paying 24 per cent more than almost three decades ago, compared to industrial users who are paying 18 per cent less now compared to then.

2018? 6 years ago. Ask your AI wether it has anything a bit more 'now' or imminent.

[moka]

Electricity Price Trend in New Zealand

https://www.mysolarquotes.co.nz/blog/new-zealand-energy-news-/how-much-do-power-prices-increase-in-nz-every-year-/

The Ministry of Business, Innovation and Employment has compiled electricity pricing data from 2006 to 2022. We dug through this data to get a clear idea of New Zealand’s power price trend. The most important finding was that the average electricity price increase in NZ is 3% per year.

In March 2006, just 16 years ago, each kWh of energy cost 18.87 cents. In March 2022, this number had risen to 30.22 cents per kWh. This is a staggering cumulative rise of about 60%.

Let us talk about the prices of petrol, which is probably the most comparable commodity. In January 2006, a litre of petrol cost $1.37. In January 2023, it was $2.33/litre. This increase is just over 40%, significantly lower than the 60% increase in electricity prices.
Moreover, unlike electricity, the average annual petrol prices have also dropped at least five times. But petrol and electricity are, after all, different commodities. Let’s go back to power costs and understand the factors that contribute to the fluctuation in its pricing.

[Panda-NZ-]

Ask Shane NZ's newest energy expert where the natural gas is located and whether it's competitive on price.

Or we can simply build another hydropower station even if the industry doesn't like it (ie it would lower prices).

[Daytr]

A critique of the Coalition Governments fast tracking and fringe legislation and the conflict of interests from tobacco & gun ownership aligned ministers.

Geoffrey Palmer: Lurching towards constitutional impropriety (msn.com)

[dobby41]

It also finds "nothing to suggest grid operator Transpower or distributors, as well as retailers, are making excessive profits".

Fair ROI depends on the investment value - inflate that and you can make what you like.

It is the design of the market that is wrong - no one here has countered that.

[dobby41]

So the Govt lambasts local government to stick to the basics then co-funds a dance competition in Auckland to the tune of $750k each (Govt and ACC).
Talk about mixed messages.

[moka]

A critique of the Coalition Governments fast tracking and fringe legislation and the conflict of interests from tobacco & gun ownership aligned ministers.

Geoffrey Palmer: Lurching towards constitutional impropriety (msn.com)

Wasteful spending!

The Luxon Government engaged in a strategy of mass repeal of the previous government’s legislation under urgency early in its term, with repeal bills being rapidly introduced and passed.

Massive amounts of money spent on policy advice and legal drafting resources have been wasted, including the resource management reform going back over about a three-year period. It would have been cheaper and quicker to amend the two massive environmental statutes involved. Instead, the government began a new process that will itself take years to complete. The result will be chronic uncertainty for years as to what the legal framework for development and resource management in New Zealand will be.

[Panda-NZ-]

Will be interesting to see the next deficit.

With inflation down, jobless up, tax cuts (triple hit to revenue), more on jobseeker and costs associated with policy changes it's hard to see an improvement from the last administrations budget surpluses.