New Energy Action Plan Will Unlock Energy, Unlock Economic Growth

A coalition of energy leaders is today launching a ten-point Energy Action Plan to address deep-seated structural problems in the sector, and is calling on the Government to implement the plan immediately to underpin the economic growth agenda.

The coalition is being led by the Auckland Business Chamber, together with policy and advocacy organisation the Northern Infrastructure Forum (NIF), and includes a range of independent generators and retailers, plus network companies and major users.

Chamber CEO Simon Bridges says that energy has a vital role to play in driving economic activity, and the Action Plan is all about helping to ensure that that role is fulfilled.

“For too long now, energy has been a constraint on New Zealand’s economic growth, rather than an enabler of it. Ineffective market structures, weak competition, and inadequate supply have flowed through into volatile and often unaffordable prices – this is inflicting pain on businesses of all sizes, and increasing the strain on household budgets.

“Unless we can address the sector’s problems, we’ll see regular repeats of the 2024 crisis, and businesses will continue to go to the wall. We’ll also will fail to realise the full benefits of any other changes the Government makes to re-energise the economy.”

Mr Bridges says countries like the UK and US are turning to energy to revitalise faltering economies, and New Zealand needs to do the same.

“When energy users have access to an abundance of energy at stable, affordable prices, it’s good news for the economy: more output; more employment; more productivity; and more resilience. The message is simple: energy is key to prosperity.”

NIF Executive Director Barney Irvine says the ten steps in the Action Plan provide the Government with a formula to turn the energy sector around.

“These are practical, realistic measures that will make a meaningful difference, and that can all be commenced immediately.”

He says today’s launch is the start of a concerted, ongoing campaign, which will last for at least the next 12 months.

“Our coalition will engage closely with decision-makers on the contents of the Action Plan, monitor their progress against it, and hold them to account.”

The Action Plan focuses on strengthening sector leadership, driving competition, increasing new generation and resilience, and ensuring effective and efficient markets. The measures include:

1. Establishing a single regulator for the sector
2. Maintaining strategic energy reserves, as back-up during sustained dry periods
3. A national energy strategy
4. Securing cross-party support for the energy programme
5. Ensuring the generator-retailer model does not stifle competition
6. Greater use of demand response tools
7. Greater use of long-term contracts, to drive generation
8. A sector development blueprint for geothermal energy
9. Removal of red tape around distribution
10. A Warrant of Fitness for the energy sector

Notes:

The Auckland Business Chamber is part of New Zealand’s largest business network organisation and part of the Chambers of Commerce network. Representing businesses of all sizes and sectors, the Chamber works to create a prosperous business environment, provide valuable networking opportunities, and influence policies that promote economic growth and success. For more information, visit www.aucklandchamber.co.nz.

The NIF is a policy and advocacy organisation formed to help raise the standard of infrastructure planning and decision-making across the Upper North Island, and maximise the contribution that infrastructure can make to productivity and liveability. Its membership includes:

• Aecom
• Auckland Business Chamber
• Automobile Association
• Civil Contractors New Zealand
• Employers and Manufacturers Association (Northern)
• KiwiRail
• Maven
• National Road Carriers Association
• Ports of Auckland Ltd
• Waikato Chamber of Commerce
• WSP
• Vector Ltd

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