John MacDonald: Is it the Govt’s job to make energy prices cheaper?

I got an email from the power company this week, telling me about my weekly electricity use and how much of that is used during my eight hours of free power on Saturdays and Sundays.  Despite doing all the washing and drying during the 16 free hours of power each week, it was only 20%.  No wonder the bills are so expensive. And that’s without teenagers chewing through the power like it used to be not that long ago.  So we probably shouldn’t be surprised by a new survey which says over 60% of people would be in favour of the Government underwriting the cost of new electricity generation, if it meant cheaper power bills.  This is a survey that was done by Curia for Octopus Energy and the Auckland Business Chamber. The results have been released as we are, apparently, just days away from some sort of significant government announcement about the energy sector.  But here’s the question: Is it the Government’s job to make energy prices cheaper?  I think we lost any right to expect the Government to deliver cheaper power prices when the market was reformed by Max Bradford all those years ago. When we got the set-up we’ve got now, which we were promised would mean cheaper power prices.  Because unless the Government buys back all the shares in all the power companies, then I don’t think it is the Government’s job to make energy prices cheaper.  What’s more, the idea of the Government underwriting new generation projects is a bit of a slippery slope. Because why should these companies get the Government being a backstop for them if things go pear-shaped? What about other sectors that have to go it alone without the taxpayer to fall back on?  Energy Minister Simon Watts isn’t saying much, but he’s describing it as something that will be “significant but surgical”.  My view is that the only way the Government could deliver cheaper electricity prices is by buying back all the shares in the big power companies. Resurrecting the old NZ Electricity Department (NZED).  But that’s never going to happen. Shane Jones has talked about it, but I think it’s very unlikely.  And that’s why I think we need to forget about this idea of the Government coming to our rescue.  We don’t expect the Government to make air fares cheaper. We’ve abandoned the idea of the Government making groceries cheaper.  So why should we expect it to make power prices cheaper? See omnystudio.com/listener for privacy information.