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Grey Power New Zealand Policy on Essential Services
Mission Statement
Grey Power believes that energy (electricity, gas, solid and liquid fuels ), should be produced, delivered and used in the most effective ways possible. Energy supplies should as far as possible be reliable and secure, and energy prices stable, undistorted and at a level that reflects their strategic importance to New Zealand.
Policy
- Grey Power believes that an independent organisation not subject to vested industry interests or political whim (modelled on the reserve Bank) should be set up to oversee the operation of the energy supply industries in accordance with a set of objectives established by government.
- Grey Power believes that the wholesale market in its present form is unsuitable for New Zealand because of the low number of participants in the market, the diversity of the generation resources and their associated production costs, and particularly because it is incapable of coping with dry year shortages. Because of this the industry needs to be regulated to eliminate price gouging and manipulation.
- Grey Power believes that the independent organisation should oversee supply adequacy, reliability and security and that the pricing structure is stable, reflects costs (including environmental costs), and takes into consideration the strategic importance of energy to all consumers.
- Grey Power believes that the present arrangements in the electricity and gas supply industries disadvantages domestic and small business consumers and inflates prices. Small consumers are disadvantaged because of their lack of market power ; competition has not been successful in their case. Regulations are required to protect the interests of these consumers. Both the allowable valuation and return for line companies, as determined under the present Information Disclosure Regulations, are excessive and unreasonably inflate prices. These regulations should be overhauled and more realistic systems implemented.
- Grey Power believes that sustainable energy resources (hydro, geothermal, wind) and non-sustainable resources (fossil fuels) should be compared in terms of their true values, including environmental costs, for the purpose of resource development.
- Grey Power believes New Zealanders will benefit most from the reintegration of the generating SOEs with centralized control. A competitive market at generation level does not serve the national interest.
- Grey Power believes that the independent organisation or a subsidiary should be empowered to settle disputes over policy interpretation and disagreements within the industry (in particular, with reference to consumers) and require restitution and impose penalties where appropriate.
Terry King
Energy Spokesperson
Energy Committee
Grey Power New Zealand Federation Inc.
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