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Someone needs to end this electricity nonsense
Mayor Tim still fighting for us to get a fairer power transmission deal, Tim responds to a recent story at NZ Herald….
In response to Herald story by Mr Kim Campbell – Chief Executive of the Employers Association 23 February 2017
Those in the regions can only be astounded by the content of a Herald article by Kim Campbell around the price of electricity transmission. Mr Campbell purports to speak for northern employers and manufacturers who on one hand say they relish free market conditions while on the other happy to benefit from a massive subsidy from the regions for the transmission of electricity.
Mr Campbell article is titled “Someone needs to end this electricity nonsense” I agree that wrongs need to be set right. Those that benefit from transmission investment should pay accordingly. Let me help Mr Campbell with some actual facts something that has been conveniently been missed out of his story:
- The rest of the country has subsidised the huge investment in improving the transmission of electricity into Auckland and other parts of the North Island.
- There is a high risk of South Island plant closures and related job losses, as a result of these businesses by having to subsidise the transmission costs of their northern counterparts.
- The $1.3 billion of grid investment in the upper north island has seen increases in transmission charges in the South Island by 330%, in the lower North Island by 225% and just 40% of the costs are being met by the upper North Island.
- The Electricity Authority estimates that under its current proposal, 28 out of 29 network areas across New Zealand will experience a drop off in transmission costs.
Conservative estimates put the savings at $200 million from increased grid efficiency. - Regional New Zealand has a tough enough time attracting industry and related employment opportunities without having to subsidise unbridled growth in the Auckland area.
Southland has a goal of attracting 10,000 new Southlanders and to increase the value added production of primary sector foods over the coming years, this can only happen if regionally based industries remain globally competitive.
We need a fair and equable electricity transmission pricing structure to give the regions a chance to advance. The Electricity Authority has consulted widely for the past eight years and they should be given the opportunity to make a determination quickly and implement the necessary change to a fairer Transmission Pricing Methodology where those that benefit from transmission pay.
I would be happy to publicly debate the issue with Mr Campbell should he be so inclined.
Tim Shadbolt.