Energy Reserve Ensures Security For Next Decade
'New Zealand needs reliable and stable power so our households and businesses can keep their lights on, even when the wind isn't blowing, the sun isn't shining, and our hydro lakes are low,' Mr Watts says.
'Last year's dry winter highlighted vulnerabilities in our energy system with a shortage of fuel and generation led to high prices and unacceptable pressure on Kiwi industries, businesses, and households.
'This could have been avoided if New Zealand had enough fuel for electricity generation to meet our energy needs. Actions by the previous government, including a ban on new gas exploration and a drive to immediately achieve 100 percent renewable electricity, combined with disappointing drilling results from our gas fields, have left us in this difficult situation.
'I have been extremely clear with power generators that the Government expects them to deliver additional supply so we can reduce the risk of winter power shortages during periods of low lake levels. This will reduce the need for significant commercial power price spikes and the need for businesses to reduce their power use.'
Genesis, Mercury, Meridian, and Contact have jointly agreed to a 10-year fuel stockpile, building resilience in the market to ensure consumers have access to fuel even when lake levels are low.
'This announcement is a positive step to show the power generators are responding. It will act as an important buffer during periods of high electricity demand in winter and when renewable generation is low,' Mr Jones says.
'While this is positive news, there is still more to do to ensure New Zealand does not see a repeat of last winter.'
The Coalition Government is taking strong actions to further strengthen New Zealand's energy system. These are focused on:
Ensuring the security of gas and fuel supplies.
Supporting investment certainty and removing regulatory barriers through Fast-track and RMA reforms.
Strengthening market competition via the work of the Energy Competition Task Force.
'All of this work is critical to easing the cost of living for Kiwis, ensuring the security and affordability of our energy system, and ultimately removing a significant barrier to economic growth,' Mr Watts says.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
NZ Herald
2 hours ago
- NZ Herald
Call for Government to help Auckland as unemployment rises
There was a real case for serious policy or fiscal stimulus around New Zealand, and particularly in the big cities, in order to 'get things going'. 'I think we need to raise the animal spirits, if you like, of the business community.' Bridges said a boost in confidence in Auckland was needed at both business and consumer levels. Things were tough in the city which hadn't caught a break since before the Covid-19 pandemic started, he said. 'There is more stimulus, there is more policy work that government could be doing to provide a better business environment in Auckland in the here and now,' he said. 'I think [the Government has] done some worthy long-term things, but in the end, if all we worry about is the long term, I'm not sure there'll be that many Kiwis left in Auckland. 'It's now that they need to be focused on.' Employers and Manufacturers Association (EMA) head of advocacy Alan McDonald said while the agriculture industry was bolstering employment elsewhere, Auckland had different economic drivers. 'Numbers from the Auckland Council Economic Unit indicated unemployment would be quite high [in the June quarter] and it has been for some time. 'There are some signs of recovery but they're being led by the regional economy and primary sector and Auckland is more about manufacturing and services. 'Hospitality, tourism, education sectors have all been down as well.' McDonald said EMA had received a spike in calls to its advice line about redundancies and restructures since March. 'We had hoped 5.1 [in December 2024] might be the bottom of Auckland's unemployment numbers, but we've been hearing from March until now that things are still very tight and very tough.' But things were starting to turn, he said. The Stats NZ quarterly labour market figures released on Wednesday also showed unemployment was more than double the national rate at 12.1%. -RNZ
NZ Herald
2 hours ago
- NZ Herald
Grocery Action Group hits out at supermarkets as Kiwis keep paying high prices for groceries
The commission's report found New Zealanders paid 3% more for their groceries in 2023 than the OECD average. 'That puts us in the top five most expensive in the OECD,' Chetwin said. But the report said 2023 prices were closer to the OECD average than previous years. Kiwi shoppers were paying 9% above the OECD average for groceries in 2022, and 14% more in 2021. However, prices for goods in the 'milk, cheese, eggs' and 'fruits, vegetables, potatoes' categories were significantly higher in New Zealand than the OECD average. The report said it was a concern 'that many of the goods in these two categories are produced and sold domestically'. New Zealanders spent more than $27 billion at supermarkets and grocery stores in the year to June 30, 2024, up 5.3% compared with the previous 12 months. Grocery Commissioner Pierre van Heerden said change in an industry this large and entrenched will take time and a deliberate, co-ordinated effort. 'In 2024, retail grocery prices appeared to have stabilised after years of significant growth, which was reflected in a slowing of the major supermarkets' gross margin growth, however, grocery prices remain higher than the OECD average,' van Heerden said. 'Recent data shows retail prices increasing again in 2025 ... there is more work to be done to improve competition.' The report also found barriers to entry for new competitors remain, while the major supermarket chains (run by Foodstuffs and Woolworths) continue to wield their power over smaller suppliers. In addition, the report highlighted geographical inequities in the two major supermarket chains' dominance. In Auckland, the major supermarkets hold 71% of the market compared to 88% in the rest of New Zealand, the report said. 'Consumers in Auckland and other main cities have a range of options, but consumers in smaller towns and rural areas typically have minimal to no choice within their locality, with some stores in small towns functioning as a localised monopoly,' van Heerden said. Supermarkets respond Foodstuffs North Island CEO Chris Quin said the co-op was making solid progress across key areas of regulatory reform. 'We back the intent of the still relatively new regulatory framework to drive competition, efficiency and better outcomes for New Zealand consumers,' Quin said. 'We've taken that responsibility seriously from day one and have put in place a broad programme of work to meet our obligations and make the system work well for customers, suppliers and retailers alike. 'Much of this work has been under way for some time and it's being delivered alongside our day-to-day focus on serving millions of customers a week, investing in new stores and technology and keeping our supply chain efficient and resilient.' Quin welcomed the commission's findings that competition in the grocery sector is more developed in areas with higher population density. 'We're pleased the commission has recognised that competition is strongest where demand and population support it, and that concerns about land holdings are not borne out by the evidence,' he said. 'We're focused on opening new stores and providing new jobs in small, remote and growing communities where the need is clear.' Foodstuffs South Island chief executive Mary Devine said the co-op's focus remained delivering for customers in all corners of the South Island and building enduring and trusted supplier relationships. 'The South Island presents unique logistical challenges due to its low population density – approximately eight people per square kilometre. 'Yes, we have supermarkets in cities and major towns, but we also have 37 stores that serve communities of less than 5000 people [and] 56 that serve communities of under 10,000 people and that's a responsibility we take seriously.' The Annual Grocery Report said 90% of Kiwis are within a 10-minute drive from a major supermarkets. Woolworths has been approached for comment.
Otago Daily Times
3 hours ago
- Otago Daily Times
Prices shouldn't depend on postcode: consumer group
Fair prices for groceries should not depend on a shopper's postcode, a consumer advocacy group says The Commerce Commission's Grocery Report - released yesterday - highlighted the fact that areas like Auckland enjoyed more competition and cheaper prices. The Grocery Action Group said the commission's report had no good news for consumers. Chair Sue Chetwin said the lack of competition in smaller centres meant markups were much higher, even though overheads such as rent were much lower. "In rural areas and smaller towns where New Zealand's supermarket choices are narrow or non-existent, the report confirms what those living there already know - that consumers pay a premium for the lack of competition. "This kind of geographic price gap is unacceptable. Fair prices shouldn't depend on your postcode." Chetwin said on top of the 4.6% increase in grocery prices for the year to May, there were other findings in the report that were thoroughly alarming. "For instance, it notes we are paying higher than the OECD average for groceries even though we earn well below the average OECD wage. "Another disturbing fact is the prices that the supermarket chains pay their suppliers are subsidised by around $5 billion in rebates, discounts and promotional payments paid by suppliers." The report confirmed Kiwi consumers were paying way over the odds for their groceries, she said.
