Grey Power NZ Federation Inc. Energy Policy
Last reviewed 15/07/2015
To establish in legislation, recognition that the supply of energy is a vital and essential service to all New Zealanders and to achieve a sustainable, secure energy industry that delivers affordable power to all households.
Problems the policy addresses
- The current domestic electricity power price structure ignores both social and sustainability goals.
- Failure to recognise power supply as an essential service has led to inequitable pricing structures and stifled the voice of domestic users in planning for the future.
- The cost of reticulation is apportioned unfairly and is counter to goals of sustainability and social equity.
- ‘Total cost’ invoicing prevents easy comparison between suppliers and is counter to the principles of free competition.
- Domestic consumers especially those on fixed or low incomes lack the ability to manage their demand without loss of essential use.
- The practice of using a secondary network within retirement villages where electricity is on-sold by the village owner, prevents consumers from taking advantage of market movements. ♠
- Regulate electricity as an essential service, which must be maintained regardless of financial constraints. (Govt, EA) (Addresses Problems 1,2 & 3).
- Domestic Household Consumers must have direct representation on all bodies concerned with electricity industry regulation. (EA, CC) (Addresses problem 2).
- Electricity invoices must be fully transparent and list each and every cost component. (EA) (Addresses problem 4).
- Provide a fiscal incentive to reduce energy use through the introduction of a reverse step tariff. (Govt., EA, CC) (Addresses problems 1, 3 & 5).
- Encourage the deployment of smart meters and easy data sharing to allow consumers to take advantage of time of use and demand pricing.
♠ Note. Further background research on the issue of embedded supply within retirement villages is required before a solution can be proposed.
♣ Rent, or occasionally Ricardian rent, is the difference between the actual cost of production and the marginal cost.