Source: Radio New Zealand
Finance Minister Nicola Willis. RNZ / Samuel Rillstone
Finance Minister Nicola Willis has committed to releasing all the calculations which she says show the government’s new gas plan will reduce New Zealanders’ power bills.
The government is pushing ahead with plans to build a new liquefied natural gas (LNG) import facility in Taranaki, funded by a charge levied on electricity companies.
Labour was quick to label the levy a “gas tax” which would be passed on to consumers, driving up power bills.
But speaking on Morning Report’s politics panel on Wednesday morning, Willis said the official advice was that the new facility would provide more energy security, ultimately bringing bills down.
“At the moment, in New Zealand, everyone pays a big risk premium for the fact that everyone is desperately worried that in the days when there’s not enough rain in the lakes and the sun’s not shining and the wind’s not blowing, we do not have enough gas.”
Willis said that risk premium would go down once the plant was built around 2028.
“The advice we’ve received… is that the reduction in the risk premium will far outweigh the cost to the energy generators of supporting the development of the LNG plant.
“We did all the analysis because we wanted to be clear that there would be more benefit than cost – and the analysis is very clear.”
Labour Party energy spokesperson Megan Woods. RNZ / Samuel Rillstone
Responding, Labour’s energy spokesperson Megan Woods said that was “absolute nonsense”.
“This is putting a gas tax on New Zealanders at a time when they’re already struggling with their power bills. The government hasn’t released the modelling. They haven’t shown us the alternatives they looked at.”
Woods said National was scrambling for solutions after cancelling Labour’s whole work programme on affordable energy storage.
“They are going for an expensive option that is going to be… taxed on New Zealanders each and every month, on their power bill, because this government has failed to do the work.
“There’s a reason they didn’t release the modeling yesterday with all the other papers.”
Willis said the government would release that modelling “pretty shortly”.
“But let’s just remember: Labour’s decisions pushed power prices up. Our solution will save Kiwis money,” Willis said.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
