On Wed, 29 May 2024 19:44:01 +1200, Crash <
nogood@dontbother.invalid>
wrote:
On 29 May 2024 04:31:07 GMT, Gordon <Gordon@leaf.net.nz> wrote:
https://www.stuff.co.nz/money/350294030/heres-why-your-power-bill-could-increase-another-15-month
Stand by for the howls as this price hits the invoices.
Here we have a situation just like water for power. Maintenance falling way >>behind until it is totally clear that something has to be done. Why oh way >>can not the Governments os any side sort this out. Maybe it is because it is >>policically damaging. The public can not see that maintenance is needed >>while everything is working. So we have breakdown maintenance.
Solar and wind power is not going to help as it is the network which is >>unload, not the supply.
EV's will make the problem worse as the demand reaches new heights.
While that is correct, increased costs with monopoly service providers >(Transpower and lines companies) is inevitable. We are at a point
where investment is required and that costs.
The timing is interesting. Both Transpower and lines companies have
had increased costs due to a higher level of storms and flooding -
Transpower had a substation badly affected by the flooding, and lines
companies also had a lot of extra work. To the extent that these
incidents are becoming more frequent, additional spending may well
need to be planned for. The aging of plant such as sub-stations has
obviously been happening for many years, and there will have been
ongoing work to maintain it - for example I think we are up to I think
the fourth cable across Cook Strait for example - and those are not
cheap. It will be interesting to see if we get more information -
part of these increased costs may well due to climate change.
Not mentioned is the fact that many lines companies are owned by
community trusts. I am in an area served by Top Energy, owned by a
community trust, and I have been notified that $300 has been credited
to my electricity bill (by my retailer) for May as a distribution of
profits to consumers. I am yet to see a headline in the MSM about
this.
You are fortunate - in effect you are a shareholder in a system that
is designed to deliver value to shareholders while also providing the underlying service - we clearly do not have the most effective system
for a service required by all New Zealanders.
So while this price increase is required, it will not flow to any
private shareholders as increased profits.
Why not? Anything the generator companies do is designed to deliver
more profits to the shareholders . . .
There is also no requirement for electricity retailers to lift their
prices for these increased costs. It is likely, but not a given.
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