“Kiss of Life”
So let me get this straight…the Greens and Labour want to nationalise an industry so they can save us $1.25 a week?
Martin Johnston writes about power prices.
Home electricity bills rose by $63 on average in the 12 months to February, with the biggest increases generally occurring in some smaller cities and their large rural hinterlands.
Dunedin got off lightest, with an increase of $9, and Auckland came second at $13, a rise of just 0.6 per cent in the retail price, weighted by retailers’ market shares.
At the top end of the scale, families and other domestic power users in Nelson/Marlborough suffered the biggest increases, of $133 (6.2 per cent), followed by the East Coast on $128. The figures come from an analysis – done by small retailer Powershop – of survey data published by the Ministry of Business, Innovation and Employment.
Powershop shows up in the ministry data as having imposed increases towards the upper end in some of the areas where it operates. In the Auckland area fed by the Vector lines network, for instance, Powershop’s retail price rose by 4.1 per cent in the 12 months, approaching double the 2.3 per cent increase of the area’s biggest retailer, Mercury Energy.¬† Read more »
Yesterday we blogged about how out of whack David Cunliffe’s power graph was. We presented a nother view from the same data.
Another reader has emailed with his thoughts.
Haven’t really followed the arguments around¬†power¬†prices. But what really grinds my gears is bad data analysis. I have done quite a bit of normalizing of data in my time and although it is a powerful tool, it has to be used with caution because it can really skew the data. As soon as I saw Labours press release I was suspicious about why they chose to normalize to the date they did.
Thanks to previous correspondent who made the raw data easily available, I normalized the data to 1990, as this was the closest data point to the reforms that people complain about. Also have blocked out via color who was in¬†power. Because of the data, I have “logged” the y-axis, so the changes are non-linear wrt this axis.
NZ is in black / bold. Shows that the price rise was not due to the early 90′s reforms. As there was almost no price increase from 1990 to year 2000. Furthermore the price was increasing before the reforms, then had reduced increases post reforms. So it is impossible to blame the reforms for the price increases.¬† Read more »
The other day David Cunliffe tweeted a misleading chart about power price rises. He was lambasted about the chart because it didn’t show when Labour was in government when the largest rises occurred.
Power prices have gone up AGAIN. Labour’s NZPower will bring down the bills. pic.twitter.com/FcYTLfjp6o
‚ÄĒ David Cunliffe (@DavidCunliffeMP) March 6, 2014
An observant reader decided to look into these claims…and he didn;t think it look right in any case.
This is what he found.
I was a little surprised by the graph on the tweet from Cunners the other day regarding NZ power prices. It looked like an outrageous manipulation.
So I checked for the source: NZ Power policy doc on Labour website. It shows the ‚Äúchange in power prices, base year 1986‚ÄĚ even though the graph shows from 1978. So it‚Äôs some sort of percentage increase from a base? Way too obscure for me and an obvious obfuscation.
Hmmmm‚Ä¶funny. So I went to the source of their info¬†( a very large report pdf).
On page 132 is Table 3.7: Electricity prices for households in US dollars/kWh¬†III.56 which I thought was much more illuminating. Here is the reproduced table (most of it anyway) ¬† Read more »
A reader does some research on last nights PR for the Labour party on TVNZ:
Yet more epic Labour fails with another botched PR piece last night.
Remember when Labour rolled out that young property speculator as their poster-boy for the plight of first home buyers?
Then¬†on Friday¬†Cunners scored the own goal with the Twitter chart showing how much power went up in his watch.
Well the Labour Muppets are at it again.
Last night’s One News rolls out in front of the nation a mother of 5 to highlight David Shearer’s latest political stunt on power prices.
In truth it is really about people who make dumb choices. ¬† Read more »
I see that TVNZ have trotted out Molly Melhuish as an “energy analyst”.
“It’s basically the generator retailers trying to raise the prices as high as the market will bear,” says energy analyst Molly Melhuish.
TV3 also interviewed her last month as an “independent energy consultant” to talk about the Green’s solar power policy
“But one¬†independent energy consultant, Molly Melhuish, believes solar is the way of the future for New Zealand.”
This is the same “independent energy consultant” that spoke at an Aotearoa Is Not For Sale march against asset sales in April last year, according to this (badly spelt) transcript of her speech:
Greypower now has a policy that says energy leglislation must say [that] all household energy and especially electricity must be provided in a manner that‚Äôs fair, sustainable, efficient, and reliable. That was the law in 2001- Labour changed the law to make that. [But] National government took away ‚Äúfair and sustainable‚ÄĚ [from legislation]. That is wrong.
What to do about it? Change the government!
The only way you will get a change is to change the government! Vote for it! Peter Love told you that¬† in the first speech; vote for change. Greypower sez vote for change. That‚Äôs your job ‚Äď We Greypower can support it but it is your job to vote for change.‚ÄĚ¬† Read more »
Last night TVNZ ran a Labour party fed story about power prices.
Tens of thousands of Kiwis on pre-pay electricity plans are being charged up to 60% more than those on ordinary plans, figures obtained by ONE News reveal.
Really…obtained by ONE News…more like obtained by Labour and given to ONE News…here is Labour’s press release¬†(timed at 14:12)
Power companies are unfairly targeting the poorest New Zealanders by charging them the highest electricity rates, Labour‚Äôs Energy spokesperson David Shearer says.
New figures obtained by Labour show those on pre-pay electricity plans – paying electricity bills in advance – pay up to 60 per cent more than those paying a regular power bill.
Amazing coincidence that TVNZ seems to have obtained the same figures and miraculously run a story that played some 4 hours after Labour issued a press release.
The figures have prompted calls for greater regulation of power prices.
“It’s grossly unfair that these people, the poorest people in our society who have no choices, should be stung by our power companies in the search for more profit,” says Labour’s energy spokesperson David Shearer.¬† Read more »
Patrick Smellie delivers up some bad news to the Greens and Labour with their crazy power policy.
Power prices could be expected to rise if the Labour and Green parties’ electricity policy is adopted using the high historic cost of building some of the country’s largest hydro dams, a research paper prepared for Business New Zealand claims.
Produced by the Wellington consultancy Sapere, which advised on the government’s 2010 electricity reforms, the paper also doubts the Labour-Greens NZ Power policy would have the desired effect on energy poverty.
Instead of moving to a centrally planned model for electricity and abandoning the wholesale electricity market developed over the last 18 years, Sapere says electricity companies should be required to do a better job of explaining their price increases and government policies should be developed to address energy poverty.
It says the NZ Power policy would place risks currently borne by the power companies on the taxpayer – one of the problems the current electricity market arrangements had fixed.¬† Read more »
If we get a Labour Green coalition next year and Gareth Hughes becomes minister of energy…
The cash, which comes from household bills, is paid when the National Grid is unable to cope with the extra power produced during high winds, or during periods of low demand.
The ‚Äėconstraint payments‚Äô have reached ¬£30,424,169 this year, compared with last year‚Äôs ¬£5million.
n just one weekend at the start of September, around 40 wind farm firms were paid ¬£2.4million to switch off. The energy they would have produced in that time could have powered up to 10,000 homes. ¬† Read more »
Today’s Herald provides yet another story illustrating the economic catastrophe that is subsidised renewable energy.
“German firms pay twice as much for electricity as US rivals, and 30 per cent more than the EU average.
“The international competitiveness of German industry is in danger,” said the BDI.
The deal will trim subsidies to solar and wind power to contain costs spiralling towards 1 trillion over 25 years, but at the same time it sets a renewable target of 55 per cent to 60 per cent of total energy by 2035.” ¬† Read more »