New Zealand First will be campaigning to split the big power gentailer companies up into separate generators and retailers.
NZ First leader Winston Peters made this announcement as part of his State of the Nation speech in Tauranga on Sunday, ahead of November's election.
“We will be breaking up the power companies so they can no longer control both the power and the price,” Peters said.
“For decades now, New Zealanders and New Zealand businesses have been getting a raw deal when it comes to electricity. You’ve been paying far too much for power.”
The big four power generator-retailers are Meridian Energy, Contact Energy, Genesis Energy, and Mercury Energy.
Currently, the Government owns a 51% stake in Meridian, Genesis and Mercury. Contact is one of the country's largest share market listed companies.
Peters said the current system was designed to make maximum profits for power companies, and everyday Kiwi families and businesses are the ones paying the price.
“Energy security is national security. It underpins everything - our households, our jobs, our industries, and our resilience as a nation.”
Peters said NZ First would deliver a National Energy Strategy.
“We’ll split the big power companies up into generators and retailers. The big four power companies control almost 90% of the electricity generation and then sell it back to themselves,” he said.
“That makes it very difficult for innovative and low-cost retailers to enter the market – which means prices stay high.
“Under the current system, the most expensive generator sets the price for all electricity - even electricity that costs peanuts to generate. It’s absurd.”
“We will replace the current system so that companies cannot hold back supply just to drive prices higher,” Peters said.
“We will guarantee long-term, fixed-price contracts for new-build generation projects, giving investors certainty. And we’ll guarantee their power will be first to be used.”
Peters said this would mean more power stations, more renewable energy, more competition and more resilience.
“And we’ll put power back into the hands of New Zealanders. If you generate power at home like solar, you should be able to sell it back to the grid at the same price you pay for it,” he said.
“It’s time to secure our electricity system for all New Zealanders.”
During his speech, Peters also talked about the economy, Fonterra, Air New Zealand, the Covid-19 inquiry, other political parties and the Indian Fair Trade Agreement.
At the event, it was also announced that former National minister Alfred Ngaro would be standing as a candidate for NZ First.
This energy policy announcement follows the party’s KiwiSaver proposal which would increase employee and employer contributions to 10% and make KiwiSaver compulsory. KiwiSavers and employers would receive tax cuts to cover the increases.
‘We will turn these current media polls into confetti’
The party has been performing strongly in polls - starting the year at 11.9% in the Taxpayers’ Union-Curia Poll and since then, sitting near 10% to 11%.
The latest March poll from Talbot Mills Research, prepared for corporate clients and obtained by Interest.co.nz, suggests support is sitting at 11% for NZ First.
On his party, Peters said: “Reflecting back, at this time before the last election, no one gave our party any chance of getting back to parliament.”
“Today we are here, and the question for the media is no longer - if we will get back, it’s ‘how many seats will we get?’.
“Well, we’ve got news for everyone, and this time it’s all good. We will turn these current media polls into confetti,” Peters said.
We welcome your comments below. If you are not already registered, please register to comment
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.