The party is also promising to open up transmission to more private investment.
National says it will “provide a clear regulatory pathway for privately owned transmission assets to connect to and operate alongside Transpower’s grid, subject to the same fundamental technical, reliability and system- operation requirements as comparable transmission infrastructure”.
National pledges to amend the Electricity Industry Act and work with the Electricity Authority to change transmission pricing methodology to allow more private transmission infrastructure to be built.
“New Zealand is experiencing its biggest renewables boom in a generation under National, with more new renewable generation built in the past three years than in the previous eight,” Brown said.
“That’s helped lower the price power companies pay for electricity, with significant reductions in wholesale prices in the past year. That supports businesses, and puts households on a path to more affordable power.
“But the price of electricity itself is only one part of a power bill. Lines charges, red tape, weak competition, and the cost of keeping the lights on in a dry year all add to what Kiwis pay. Our nine-point plan takes on each of them.
“Lines charges accounted for around two-thirds of the rise in the average power bill over the past year. They’re set under an outdated law, so we’ll review it and make necessary changes ahead of the next price reset. We’ll also let Kiwis choose who does the connection work they’re paying for.”
The policy promises to force lines companies to approve residential and small-business solar connection applications within two working days, with automatic compensation for customers for every day a network goes over the deadline.
The party also promises to make “affordability” a core objective for the Electricity Authority by writing it into law, so the cost of power for households and businesses carries equal weight with competition, reliability and efficiency in every decision the regulator makes.
National would require the Electricity Authority to regularly publish an independent assessment of how much back-up generation New Zealand needs to get through dry periods, when hydro storage is low and wind and solar output is weak. It would also require greater disclosure of back-up contract volumes, durations and prices.
The party would create a standardised back-up power contract and require large generators to participate in regular auctions, so retailers, businesses and new investors can buy guaranteed cover on common terms. National’s policy document argues that the current back-up market is too concentrated, with the four major gentailers owning more than 95% of flexible generation.
The policy also notes the Government is “starting a procurement process” to deliver an LNG import terminal, which National says will reduce power prices by reducing dry-year risk. However, support for the terminal within the coalition Government is fragile.
‘Absolute fizzer’ – Labour
Labour’s energy spokeswoman Megan Woods responded to the policy saying the policy was an “absolute fizzer’.
“Kiwis are sick of being told cheaper power is just around the corner. National has had three years to deliver, and power bills are still hurting households,” Woods said.
“After three years in Government, Simeon Brown should be delivering cheaper electricity, not another grab-bag of ideas and excuses.
“This is not a plan to bring power bills down. It’s an admission National hasn’t got a clue how to do it.
“Families are cutting back, people are rationing power, and pensioners are struggling to keep warm. Meanwhile, National is offering more reviews and working groups instead of relief,” Woods said.
Woods said Labour’s policy, “SolarSaver” which would help boost rooftop solar uptake, will cut bills and said Labour would ban price gouging.
National has announced a policy similar to SolarSaver to boost rooftop solar uptake.