“ACT is seriously alarmed at spiking wholesale energy prices and we’re calling on all political parties to come to the table for a cross-party accord supporting the use of local natural gas deposits,” says ACT Energy and Resources spokesman Simon Court.

“With hydro lake levels low, and high seasonal demand for power, we’ve seen wholesale prices spike to almost double what they were a month ago.

“For now, households and businesses have been insulated from the full effect of spiking energy prices thanks to energy companies’ hedging or insurance schemes. But if we don’t lift our ability to generate more power at short notice, shortages will inevitably come home to roost in our power bills.

“Higher energy costs on business will flow on to higher prices for practically all goods and services – the last thing we need in the middle of a war on inflation.

“Ideally we’d deal with seasonal supply crunches by dipping into stored energy supplies like natural gas. But Labour’s ban on gas exploration shattered companies’ confidence to invest in new gas supply. Even with the Coalition’s reversal of the oil and gas ban, companies may still be wary of gambling on new energy projects that could just get scuppered by a future Labour-Greens Government.

“We’re now in the absurd situation where power companies are looking at importing natural gas from overseas to make up for declining local production. Even the Greens ought to be able to admit that’s an own goal.

“ACT is calling on Labour and the Greens to come to the table so we can form a cross-party stance that tells the world it’s safe to invest in natural gas in New Zealand.”

© Scoop Media