Global market slump just means lower mortgage rates faster & more upward pressure on house prices; Our private rental market is totally unprepared for 300,000 new retired renters; Great power fee news
Hi Bernard. John @ Our Energy here - yes, we're one of the companies at the lower end of the disconnection/reconnection fees for non-payment report released by Common Grace Aotearoa. Agree it's great work and we support the request to have these fees abolished. I'd like to add some context to this though, one specific to us and a more general point, which we also provided to Common Grace Aotearoa when we were contacted about this work they were doing.
1. While Our Energy communicates these fees on our website, we have only once ever been in a position where we've been faced with a potential decision to disconnect and/or reconnect a customer's power due to non-payment. In that situation, despite a few months of communication and help offered by Our Energy, the customer actually switched away to another retailer before we could take further action. No, we have not been able to recover the ~$600 in power costs lost in this situation (excluding our staff time spent on trying to find a way to resolve the issue with customer).
2. More generally, and in fairness to retailers named in the report, the source of these fees is actually the metering companies (there are now only 2 significant players in the NZ market here). In other words, metering companies have disconnection/reconnection fees that they charge to retailers if they receive a request from a retailer to do so. We provided evidence of this to Common Grace Aotearoa as part of our response to them.
Again, none of above should suggest that we do not support abolishing these fees for non-payment reasons, but we do need to be clear about where they come from and context around whether retailers are simply recovering costs or making a margin on such activity is important.
One is Bluecurrent (formerly called called Vector Metering), which is now jointly owned by QIC and Vector (Auckland's network company). The other is Intellihub (owned by Pacific Equity Partners and Brookfield). Both these companies' charges for disconnection and reconnection fees are broadly similar - I can send you a sheet of these costs separately. Not necessarily is the answer to your second question - some retailers charge more than the cost of this activity from the metering companies, some the same or less.
Like the health system, social licence works until it doesn’t and I feel that the tipping point of the former will lead to the tipping point for the latter
Excellent post today Bernard. It needs to be widely listened to. We have a shortage of affordable home but a surfeit of top end housing/empty second homes. We have to talk about the wealth held in housing and act decisively to reduce the tax advantages of holding property.
NZ Superannuation is as you say unsustainable but at the same time it is not high enough for those who rent. To get additional assistance from the Accommodation Supplement requires that the superannuitant holds less than $8100 in cash assets - how crazy is that?
NZ Super could be treated as a basic income with other income taxed on a separate tax scale that has the effect of clawing it back from the top earners- Research from the PIE hub, Economic Policy Centre models how this can be done and the useful savings that could be generated without affecting those who rely on NZS.
Back in the day was our housing policy successful?
This study looks at affordable housing since 1960, and makes the case that government financial support for house buyers until 1990 was very successful in providing affordable houses and high home ownership.
Suggest you read pages 2 to 7, and look at figures 2.1 (page 3) and figure 2.2 (page 4).
I suspect that many of the current housing policy analysts are blinkered to the research findings from Kaye Saville-Smith about the level of government support for first home buyers before 1991 because of an underlying belief (expressed by Reagan) that the government is the problem. This leads to a predilection to point to planning and planning law as the problem?
This is the first time outside my own weird head I’ve seen Kamala Harris’s home straight entry to the Presidential race compared to Jacinda Ardern’s rise. The dynamics are extremely similar and I’m surprised that no one in the firehose of punditry in America has drawn the parallel. It seems to indicate that her timing -someone’s timing anyway- was impeccable.
Good on Harris but I think the reason no one in the firehose of punditry in America has drawn the parallel is because we're a tiny largely irrelevant country in the eyes of many Americans.
Lyn your nature pic is superb, and when I look at the street scene in your leading photo I see Us - a sentimental Us. Probably why I think the audio of vinyl is best and have no idea what that thing is that I'm meant to be making my coffee in.
Really good info on so much - housing and seniors, electricity and hopeful graphs - plus plus plus.
In addition to all the work needed on affordable housing generally, the renting-in-retirement issue was also one that local authorities used to tackle - they were (and probably still are) a major supplier of affordable rental housing for superannuitants but over the past 20+ years, have been reducing or holding stock stead rather than increasing stock.
Hi Bernard. John @ Our Energy here - yes, we're one of the companies at the lower end of the disconnection/reconnection fees for non-payment report released by Common Grace Aotearoa. Agree it's great work and we support the request to have these fees abolished. I'd like to add some context to this though, one specific to us and a more general point, which we also provided to Common Grace Aotearoa when we were contacted about this work they were doing.
1. While Our Energy communicates these fees on our website, we have only once ever been in a position where we've been faced with a potential decision to disconnect and/or reconnect a customer's power due to non-payment. In that situation, despite a few months of communication and help offered by Our Energy, the customer actually switched away to another retailer before we could take further action. No, we have not been able to recover the ~$600 in power costs lost in this situation (excluding our staff time spent on trying to find a way to resolve the issue with customer).
2. More generally, and in fairness to retailers named in the report, the source of these fees is actually the metering companies (there are now only 2 significant players in the NZ market here). In other words, metering companies have disconnection/reconnection fees that they charge to retailers if they receive a request from a retailer to do so. We provided evidence of this to Common Grace Aotearoa as part of our response to them.
Again, none of above should suggest that we do not support abolishing these fees for non-payment reasons, but we do need to be clear about where they come from and context around whether retailers are simply recovering costs or making a margin on such activity is important.
Thanks John. That's very useful. Who are the two metering companies? Are their fees the same as the ones charged by retailers? Cheers Bernard
One is Bluecurrent (formerly called called Vector Metering), which is now jointly owned by QIC and Vector (Auckland's network company). The other is Intellihub (owned by Pacific Equity Partners and Brookfield). Both these companies' charges for disconnection and reconnection fees are broadly similar - I can send you a sheet of these costs separately. Not necessarily is the answer to your second question - some retailers charge more than the cost of this activity from the metering companies, some the same or less.
Like the health system, social licence works until it doesn’t and I feel that the tipping point of the former will lead to the tipping point for the latter
The kaka is magnificent, thank you Lyn and Bernard.
Haggard took the money? That is a surprise… nz really is open for business.
Good morning from a" Geriatric Italian "
Super photo of the Kaka..👍
Great photo. 😁
Not a New Yorker subscriber, but on the Economist and New Philosopher! (I do read them, tho)
(in the case of my son in Wellington he spend almost 60% of his income in rent, which is soul-crushing)
Excellent post today Bernard. It needs to be widely listened to. We have a shortage of affordable home but a surfeit of top end housing/empty second homes. We have to talk about the wealth held in housing and act decisively to reduce the tax advantages of holding property.
NZ Superannuation is as you say unsustainable but at the same time it is not high enough for those who rent. To get additional assistance from the Accommodation Supplement requires that the superannuitant holds less than $8100 in cash assets - how crazy is that?
NZ Super could be treated as a basic income with other income taxed on a separate tax scale that has the effect of clawing it back from the top earners- Research from the PIE hub, Economic Policy Centre models how this can be done and the useful savings that could be generated without affecting those who rely on NZS.
Brilliant Susan. Thanks. I need to do more work on this.
Susan, have you read The Deficit Myth? Very interesting ideas re superannuation..
I looked back in time to see when the accommodation supplement asset threshold was last adjusted/set - 1 July 1992!
Craig and some would trace the figure back to 1988 when we had the precursor called the accommodation benefit
That Nature Pic is stunning :) I had 3 of them watching me as I dig trenches on the weekend... loudly stripping some of the trees...
Now I need to find a way to dispose of all those old New Yorker magazines.
Ha! They are pesky buggers.
Back in the day was our housing policy successful?
This study looks at affordable housing since 1960, and makes the case that government financial support for house buyers until 1990 was very successful in providing affordable houses and high home ownership.
Suggest you read pages 2 to 7, and look at figures 2.1 (page 3) and figure 2.2 (page 4).
https://www.buildingbetter.nz/wp-content/uploads/2023/08/Saville-Smith_Nov2019_revitalising_production_affordable_housing.pdf
(copied over from the chat)
Very good paper. Kay is a hero.
I suspect that many of the current housing policy analysts are blinkered to the research findings from Kaye Saville-Smith about the level of government support for first home buyers before 1991 because of an underlying belief (expressed by Reagan) that the government is the problem. This leads to a predilection to point to planning and planning law as the problem?
Yen carry trade not quite as simple as that however a good primer Bernard ..
Thanks Andy.
Eat like a Bird and sh@t like and elephant and up the stairs and down the elevator a few carry trade rules hehehe
This is the first time outside my own weird head I’ve seen Kamala Harris’s home straight entry to the Presidential race compared to Jacinda Ardern’s rise. The dynamics are extremely similar and I’m surprised that no one in the firehose of punditry in America has drawn the parallel. It seems to indicate that her timing -someone’s timing anyway- was impeccable.
Good on Harris but I think the reason no one in the firehose of punditry in America has drawn the parallel is because we're a tiny largely irrelevant country in the eyes of many Americans.
Lyn your nature pic is superb, and when I look at the street scene in your leading photo I see Us - a sentimental Us. Probably why I think the audio of vinyl is best and have no idea what that thing is that I'm meant to be making my coffee in.
Really good info on so much - housing and seniors, electricity and hopeful graphs - plus plus plus.
The more interesting thing is rates won't be hitting the lows of the past.
Underlying factors supporting it are either gone, or being consistently undermined by the economies which matter (which does not include New Zealand).
What political decisions will be made to keep the status quo going? I fear we are yet to see the worst of New Zealand politics.
We are both superannuates and work as well, I understand we pay different rates and do not receive all of our pension depending on our main income.
I would be interested in more details of how the system works.
In addition to all the work needed on affordable housing generally, the renting-in-retirement issue was also one that local authorities used to tackle - they were (and probably still are) a major supplier of affordable rental housing for superannuitants but over the past 20+ years, have been reducing or holding stock stead rather than increasing stock.