11. DAVE HEREORA (Labour) Link to this
to the Minister of Energy
What reports has he received on investment in electricity transmission?
Hon DAVID PARKER (Minister of Energy) Link to this
Transpower reports that it will spend $450 million this year on grid improvements. That is part of the $3.5 billion of investment in electricity transmission projects due in the coming years. It is on top of the billions of dollars that generators will spend on new renewable projects. Transpower says that investment in electricity generation and transmission infrastructure is on a scale that this country has not seen for 30 years. Under a Labour-led Government electricity security margins continue to improve.
What reports has the Minister seen on the Waikato to Auckland transmission project, which all of those in the industry agree is necessary?
I have seen an email, which I will seek leave to table at the end of this question, reporting on a meeting between a member of this House and the Waikato lobby group opposed to Transpower’s new pylons through to Auckland. This member has been telling the lobby group—and this is a quote from the email report of the meeting—“The only way to stop the pylons going ahead is to change the Government.” He has not said that to Aucklanders, who know that the project is needed to ensure Auckland’s security of supply. It is a case of one story for Waikato voters and another story for Auckland voters—different stories for different audiences. The member is well known for telling people what they want to hear: it is Mr John Key.
Peter BrownHas the Minister read the recent report by the Electricity Commission entitled Market Design Review—Options Paper; if he has, how does he react to its stating, in essence, that network charges have remained relatively static since 1999, but, in contrast, the energy component of customers’ bills has been rising sharply, with the largest increase being felt by residential users?
I first respond by thanking the member for that question. I am surprised that it has not been raised earlier by other members, because, as I said at the select committee, I think it is a very proper concern to raise. I am concerned about prices, and I am particularly concerned about the matter that the member referred to, which is the ever-widening gap between residential and industrial prices.
Gerry BrownleeCan the Minister confirm that he just told the House that security of electricity supply has improved under a Labour Government, even though we have had 4 years of very tight supply in the period that Labour has been in Government; can he further explain why there has been a 48 percent price rise for domestic consumers over the last 5 years; and given his previous answer to Mr Brown, what does he intend doing about it?
In respect of security margins, there is absolutely no doubt that security margins are improving year by year. Indeed, I would note that the worst electricity disaster in the last couple of decades was during the time of the National Government, which oversaw a period when the lights went out in Auckland for 2 weeks.
Does the Minister concur with the view that our electricity industry is in a sad state, when the same report that I have referred to states: “in winter 25 per cent of homes had living room temperatures below 16°C (compared to World Health Organisation recommendations for adequate warmth of 21°C in the living room, and 18°C for other rooms);”?
I do accept that there are problems with heating and fuel poverty for some people in New Zealand. I would note that that is one of the reasons why we have improved the minimum requirements under the building code—to make it more affordable for people to heat their houses. I would also note that in the last 9 years we have retrofitted approximately 42,000 houses in order to improve their heating efficiency. We have ramped those programmes up, and are expecting to do about 30,000 homes in the forthcoming year alone.
I seek leave to table a document produced by the Electricity Commission showing that security of supply has been declining for the last 5 years, during a period when the price for residential consumers has risen by some 48 percent.
Madam SPEAKER