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Grey Power September 2019

The Grey Power Magazine is a prime national news source for its readers – New Zealand men and women over 50. Circulated quarterly to more than 68,000 members, Grey Power Magazine reports on the policies of the Grey Power Federation, and the concerns of the elderly, backgrounding and interpreting official decisions which affect their lives.

The Grey Power Magazine is a prime national news source for its readers – New Zealand men and women over 50. Circulated quarterly to more than 68,000 members, Grey Power Magazine reports on the policies of the Grey Power Federation, and the concerns of the elderly, backgrounding and interpreting official decisions which affect their lives.

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NZ GREYPOWER MAGAZINE » SEPTEMBER <strong>2019</strong> 11<br />

Is there no escape from<br />

higher power bills?<br />

Electricity Industry xommentator and member of the<br />

<strong>Grey</strong> <strong>Power</strong> Energy National Advisory Group, MOLLY<br />

MELHUISH, takes a close look at whether power prices<br />

must rise to build new power stations, or whether local<br />

energy sources can increasingly meet our needs. She was<br />

recently described by US energy regulator consultants,<br />

the Regulatory Assistance Project, as the heart and soul<br />

of energy advocacy in New Zealand.<br />

BY MOLLY MELHUISH<br />

What’s going on<br />

with power pricing?<br />

The Electricity<br />

Price Review reported<br />

to Government in<br />

May, but since then, total<br />

silence.<br />

The Electricity Authority,<br />

Transpower, and Ministry<br />

of Business Innovation<br />

and Employment all<br />

released documents at the<br />

end of July. All confirmed<br />

the industry’s new vision,<br />

that “New Zealand needs<br />

to double its electricity<br />

generating capacity”, yet<br />

must retire all our coal and<br />

gas-fired power stations.<br />

This is to reduce carbon<br />

emissions as we agreed to<br />

in the Paris Climate Conference.<br />

Who will pay for all<br />

these new power stations?<br />

The industry claims prices<br />

won’t rise because new<br />

wind turbines are cheaper<br />

to build than today’s<br />

power stations, and cost<br />

nothing to run. Yet money<br />

doesn’t come out of the<br />

air even if the wind power<br />

does. Others, including the<br />

Interim Climate Change<br />

Committee, say that prices<br />

must inevitably rise.<br />

Here’s what I think is<br />

going on. The corporates<br />

that generate and sell elec-<br />

tricity, and own power<br />

lines, are all desperate to<br />

grow their “assets”. They<br />

are saying solar and batteries<br />

are bad investments<br />

that are used by rich<br />

householders to cut their<br />

power demand, leaving<br />

the poor to face higher and<br />

higher power bills.<br />

Therefore, they say, we<br />

must change the way we<br />

pay for power. Instead of<br />

being charged mostly by<br />

the kilowatt-hour, householders<br />

should pay much<br />

higher daily fixed charges,<br />

around two dollars per<br />

day even for the lowest users.<br />

That means low users<br />

can’t get out of paying for<br />

the electricity assets we all<br />

use.<br />

The Electricity Authority<br />

says the same for transmission<br />

pricing (which<br />

householders pay only<br />

indirectly). Prices should<br />

have “fixed-like” charges,<br />

so buyers can’t pay less<br />

by moving their electricity<br />

demand away from peak<br />

times. Prices would depend<br />

mostly on where you<br />

live, not how much you<br />

use or when.<br />

This is like a tax on essential<br />

services. It is “efficient”<br />

because it’s hard<br />

to evade by using less or<br />

changing when you use it.<br />

It deprives consumers of<br />

the power of choice.<br />

What these industry<br />

folk don’t say is that<br />

there’s another way for<br />

our electricity and energy<br />

systems to grow. Energy<br />

efficiency in houses is the<br />

cheapest way to release<br />

electricity for others to<br />

use. Clean wood burners<br />

can supply warmth when<br />

electricity from coal or gas<br />

is meeting winter peak demand.<br />

The big-electricity industry<br />

is fighting against<br />

competition from local<br />

energy providers. The industry<br />

is anti-competitive,<br />

even predatory in its pricing<br />

proposals. It pays no<br />

attention to submissions<br />

from householders.<br />

High fixed charges allow<br />

them to reduce the<br />

per-unit price they charge.<br />

This makes investment<br />

in insulation or efficient<br />

lights or appliances pay<br />

MOBILITY SCOOTERS MANUKAU<br />

We service Auckland, Papakura, Pukekohe, Waiuku.<br />

SCOOTERS POWER CHAIRS WHEELCHAIRS WALKERS<br />

back over a much longer<br />

time. This is even truer for<br />

solar panels. A few years<br />

ago you could sell your excess<br />

solar electricity back<br />

at or near the retail price;<br />

now you’re lucky if you get<br />

eight cents per unit.<br />

Local energy has a huge<br />

advantage over buying<br />

your power from the big<br />

power companies. Solar<br />

can be designed so if the<br />

power lines fail you still<br />

have electricity in the<br />

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house. And a good local<br />

energy system should allow<br />

you to sell to your<br />

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Clean wood burning<br />

gives home heating, water<br />

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Local energy gives resilience,<br />

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We must make sure<br />

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The Low Fixed Charge<br />

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