MEUG report on Meridian adds to signs generator-retailers are using wholesale electricity market to generate excess profits, which is hitting small retailers, big buyers and our climate ambitions
The systemic bias to marginal supply shortage has been well understood for 20 years as have been the solutions - Labour in opposition had a single buyer / target capacity solution to name one approach - seems to be different in Government. Better at can kicking that solving problems - dismal.
I love your work Bernard, bang on the money again. The truths always in the money it seems. The politics of Pharma, medicine and Hemp are much the same
Bernard - your summary and insight is, as usual, spot on. Your final paragraph is of course correct and also incredibly worrying. This market needs to be addressed and not left in the current state.
Great analysis Bernard, as usual. As recently as 1990, we had the second cheapest power prices in the world because our power system was state owned & operated on a cost recovery basis. Super profits & obscene executive salaries weren't part of the equation because we had a progressive tax system which adequately financed government expenditure - government didn't need to raise revenue thru dividends from power suppliers. The government needs to grow a pair & use its 51% ownership to structurally reform power. Power is like housing - market failure.
Excellent Bernard. I'd like to point out that if the gov wants to run surpluses to pay down debt then that is further proof that NZ is no democracy. If it runs a surplus that means it will have pulled money out of the economy that people need right now. Given the present situation the gov should be running huge spending programs financed by our own RBNZ and therefore not incurring any genuine debt. I am soooo sick of the debt scam. I'd love to see some democracy.