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.
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.