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"The sentiment around making the electricity market fairer and cheaper for customers is great, but there's still something missing." That's Rewiring Aotearoa CEO Mike Casey's summary of Act's energy policy announcement today.
All the parties are in favour of (say it with us now) 'cheap, abundant energy'. They just have different ways of getting there. Understandably, ACT’s focus is on reducing barriers for markets to function well and Casey says one of the highlights of the policy is “letting people sell the power they make”.
"It sounds like a no brainer, and it is: more value for consumers, more generation incentivised."
Being able to have different trading relationships for the energy you buy and the energy you sell is something we've been advocating for, alongside many others.
Casey also endorses the view that smarter technology should compete with expensive new lines, something that's becoming increasingly important when lines charges make up such a large part of rising electricity bills.
"Requiring Transpower and networks to demonstrate batteries and other technology is common sense. And there are some uniquely ACT suggestions around breaking down Transmission and Distribution bottlenecks by letting additional, qualified providers build new connections as long as they meet important standards."
On the gentailers, Casey says he wouldn't shed a tear if they were split up, but that would be unlikely to reduce bills significantly.
"Ultimately, ACT is saying they wouldn’t break them up, but that they will strengthen regulator powers. We're fully behind stronger regulators, and while Rewiring sees real merit in the suggestion of other parties to bring together energy regulators, strengthening regulator powers is a step in the right direction."
Regulatory reform is clearly needed in the electricity market. But regulatory reform is also needed when it comes to finance and that's the bit that's missing from Act's policy.
"The big guys can still finance stuff that households and businesses can't. That's another unlevel playing field. And we would love Act to level it by joining the major parties, backing the Ratepayer Assistance Scheme, unlocking more consumer investment and really driving down bills. Importantly, the RAS is not a subsidy, it's a finance scheme, but it's a crucial part of the solution."
Casey says he's been struck by the fact that there are growing areas of cross-party consensus on a lot of stuff that matters, including four important things: 1) The benefit of more affordable and abundance electricity to the country and our economy. 2) Enabling people to sell, gift and trade the energy they make. 3) Requiring Transpower and lines companies to fairly weigh up batteries and other new technologies against building costly new lines and infrastructure. And 4) Stronger energy regulators.
"Agreement doesn’t mean action, however, and I challenge all parties to prioritise consumers. The energy system is meant to serve them, not the other way round. And everyone wins when we have more affordable and abundant New Zealand-made energy."
Political Power has gone local! Dr Nick Smith, mayor of Nelson and ex-National Party minister, is an early adopter when it comes to electric machines but, through his efforts with the council and his close involvement with the Ratepayer Assistance Scheme, he's also embracing one of Rewiring's core mantras: once you've electrified your own life, electrify someone else's life, too.
Read moreDownloadWhether it's the growing number of electric buses, new electric trains for the lower North Island and City Rail Link, or new electric ferries, we love seeing more electric transport options in our big cities. It's also good to see some of our smaller cities like Palmerston North, Timaru and Nelson going electric and, as is almost always the case, the drivers reckon it's better on electrons. At the Electrify Nelson expo, we spoke with one driver Lee about the city's electric buses. And he definitely wouldn't go back to diesel.
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