Source: BusinessNZ
A New Zealand energy strategy draws closer with the release of the long-awaited electricity market review and government action plan, the BusinessNZ Energy Council (BEC) says.
Acting Executive Director Ben Young says BEC welcomes two new workstreams created by government to deliver on their proposed policy changes, aimed at increasing investment in energy security and building stronger markets broadly across the sector.
“Many of the announced policy changes included in the plan have been advocated for by BEC and its members for some time, including all-of-government contracting and taking steps to address gas shortage concerns, with their solution being to fund the construction of an LNG terminal.
“Announced co-investment and procurement contracts will go a long way in addressing serious concerns from investors, who have previously lacked confidence in the stability of policy settings to commit.”
Young says it’s important that New Zealand stay the course on a future energy strategy across successive governments, but announced redress for any policy changes that effect a project’s viability will ultimately be paid for by the consumer, as taxpayers.
“We’re pleased to see the Government has not moved forward with the suggested forced amalgamation of the 29 existing electricity distributors down to just five. The suggestion as part of the Frontier Economics review would have introduced unnecessary costs and uncertainty at a time where rapid investment, at scale, is critical.
“BEC congratulates the Government on taking positive steps toward a brighter energy future for New Zealand, and looks forward to the planned consultation with industry to strengthen framework on reliability and resilience, soon.”
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