Reform prospect electrifies farmers

With many farmers averaging $21,000 per year for their electricity, the prospect of substantial reform to the New Zealand electricity market has Federated Farmers amping up its submission.

“It would be a stretch to say the Bradford reforms of the 1990s have been an unqualified success,” says Philip York, Federated Farmers electricity spokesperson.

“As a member of the electricity lobby group, CC93, Federated Farmers tried to get such a review under the last Labour Government.

“We are glad to have a review now as this is all about delivering a fair and transparent electricity sector. When you have claims of $4.3 billion being ripped out of consumers, there seems something seriously amiss with the current sector.

“That’s why farmers have not experienced the promised benefits of competition, quite the opposite in fact with escalating prices. The Minister needs to be mindful that success is ultimately measured by the size of the power bill farmers pay.

“It seems commonsense to allow lines companies that know their local area back into retailing electricity. Having more companies competing to sell electricity is important to farmers who have little choice today.

“Yet this also hinges on reform to the Resource Management Act to make it simpler to build generation assets. It also depends on certainty around climate change policies to ensure goal posts don’t shift.

“While Federated Farmers is yet to form a view in its submission, the replacement of one quango, in the form of the Electricity Commission, with the proposed Electricity Market Authority is something we need to form a view on.

“Farmers will wish to know whether this is reducing the size of Government. It would be disappointing to have this new authority shadowed by an army of policy people within the Ministry of Economic Development (MED).

“Federated Farmers backs the review as being positive for agriculture. It will hopefully lead to price reductions in what is a large cost input on farming,” Mr York concluded.