National’s energy policy throws consumers to the wolves

by frog

The more I read it, the angrier it makes me. The National Party Energy Policy makes it crystal clear that consumers will be left entirely to the whims of the pseudo-market.

With the likely destruction of the Electricity Commission and the gutting of the RMA, anyone will be able to build pretty much anything they want, anywhere, as long as it uses natural gas which we haven’t found yet, but which National will subsidise searching for. Jeanette summed it up as a “drill and hope” policy. I have quoted much of her release in my last post.

This means completely cutting all the Energy Efficiency programmes that the Electricity Commission (EC) manages and pays for, which are targeted at big business. Now, some may say that I am not a fan of big business. However, the assistance they get from the EC is paid for by themselves through a levy. That means businesses, which are inherently inefficient, will not get the help they need to find all the energy efficiency savings that are staring them in the face.

A typical audit for these businesses finds cost-effective savings of nearly 30%. After they capture that, follow up audits usually find a further 20% in cost-effective savings. Why would you kill a money spinning scheme like this, which raises productivity and profits? Just for ideological spite. The result is that we will need more generation to supply all that wasted energy. We will all pay for that and our security of supply will be worse off than now.

Next come the household consumers. The EC makes sure that we have enough generation and enough transmission to keep the economy going without breaking the budget. It was created because the National Party’s so called electricity reforms of the ’90s actually gave generators an incentive to build less and charge more. Thus, our higher prices are, as National claims, in part the result of capacity constraints. However, National’s policies are to blame, not the EC.

The EC was created to fix that problem and it is working. Now National wants to ditch the EC. Without the EC, we would have had blackouts this winter. They are the ones that made sure we had enough generation to cope. And it worked!

Then there is their false promise of a renewable future, all the while making firm financial commitments to a gas-fired future. Very disingenuous.

Oh, well. Same old failed policies of the past. No surprise there. The wolves will be circling around the carcasses after another round of National Party ‘reforms’. Do voters really have such short memories?

frog says

Published in Economy, Work, & Welfare | Parliament by frog on Thu, August 14th, 2008   

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