Huge wholesale power price increases will be paid by consumers

Businesses are being hit by massive power bill rises as dry weather along with the natural gas shortage wreak havoc in the electricity market. Hundreds of thousands of dollars will need to be vacuumed from consumers to compensate for the costs to business.

Companies are paying 50% more than they did last year and three times what they were in 2019. Foodstuffs is paying 70% more than its last contract.

Lack of rain to drive hydropower and technical problems in gas supply have led to the shortage, but the root cause is the focus on renewables at the expense of coal fired generation.

The amount of coal being burnt varies but can be up to 25% of the current supply. This is expensive coal purchased from Indonesia and shipped to NZ by CO2 producing freighters and carted from the port to Huntly in CO2 producing trucks.

This happens while excellent quality and far cheaper NZ coal (16 billion tonnes of it) lies in the ground but can’t be mined because of the govt’s green energy policies. Ironically, most of the coal we do mine is exported.

A couple of stations producing power from coal would have prevented these shortages, and also the need to import expensive Indonesian coal, but the Green Communist Party and Labour have persuaded NZ citizens to vote for coal to stay in the ground.

NZers wanted so called green power and they’re getting it. Along with the huge increases in cost that green energy demands.

Amazing that people vote to pay more for power when poverty is supposed to be such a major concern in New Zealand. Well done those voters. You must have money to burn, and no real concern with poverty.

Note: This is not just a matter of price increases. It will lead to inflation which in turn will lead to interest rate increases and then the excrement will really hit the fan.

7 comments

  • My bill this month is up heaps… will check it out!

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  • Green with envy of other countries where such madness does not prevail?

    Maybe the NZ commies will introduce all sorts of price controls?
    Electricity. Petrol. Residential rents. Internet access plan costs. Cell phone and land line charges.
    That should all be fun, along with the bureaucracy needed to run / police it
    And the soon-to-be secret police, too, perhaps?
    Along with ‘dob-in’ advice from comrade kindness.
    Anyone remember MRP?
    Carless days?
    Buy NZ and keep your country working?

    The ‘bother’ with all those things is the stealth taxes involved. That could cause a migraine or two.

    Liked by 1 person

    • There is this too, (from the comments section of another blog)-

      A business survey of 87 businesses was released today with the following increase in their costs;

      Electricity – 75.7%
      Gas – 50%
      Imports – 124%
      Transport – 77%

      The same businesses have stated their market responses as such;

      Prices up to customers – 74%
      Absorb costs, but reduce activity – 42%
      Reduce staff – 22%
      Move manufacturing overseas – 8%
      Close business – 3%

      Liked by 1 person

      • Perversely, talking to an England-based supplier, he said that some industries there were contemplating bringing back production from sweat-shop labour economies, because of severe uncertainties about the supply chains functionality, post-covid-lock-downs. Tis a weird world.

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      • Matt Canavan makes the excellent point that Australia should not be part of global schemes that advantage China as they are fast emerging as a military threat not only to Australia but the whole Democratic west. He also says we should stop sending them coal, stop buying their manufacturing goods, because its all adding to their ability to wage war on us. Makes a lot of sense.

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  • To quote a rapper I know of… People so stupid.

    I pray the next earthquake to hit Wellie is directly under the Beehive and that bitch is in it.

    Liked by 1 person

    • Just watched Matt Canavan on Sky talking about Net Zero carbon targets and what BS they are. Speaks such clear and sensible truth. Where the hell is the comparable NZ politician???

      Liked by 1 person