Electricity changes ‘regional tax by stealth’
Proposed changes to New Zealand’s electricity pricing structure have been described as a ‘‘regional tax by stealth’’ by submitters.
Submissions have now closed on the plan, which would result in price rises for Northland and Auckland consumers in particular.
The Electricity Authority said it was a fairer way to pay for the national electricity grid but meant some regions would pay more for the benefit of better infrastructure. Over time, it should reduce costs for the industry and consumer prices.
The overall impact on residential prices would be an increase of 0.5 per cent, or $11 per household per year.
The biggest increases would be worn by those in Auckland, Northland, Ashburton and the West Coast.
One of the biggest winners in the overhaul would be Rio Tinto’s Tiwai Pt aluminum smelter, with annual charges projected to drop by $21 million.
The Employers and Manufacturers Association was among those submitting on the changes.
‘‘This is a tax by stealth on our members, and for some of them it will severely impact their business,’’ Kim Campbell, its chief executive, said.
‘‘There are perverse outcomes where changes to electricity pricing will take more out of areas such as Northland than the Government provides to the region in economic development initiatives.’’
Small to medium-sized businesses in Auckland face increases of $1500 per annum, and those needing high-voltage connections may be paying an additional $22,000 per annum.
‘‘Other members who are large-scale energy users are looking at multi-million dollar increases,’’ Campbell said.
The proposal seemed to be more about subsidising the smelter, than sound policy for the national good.
‘‘The grid has already been paid for, and we believe the EA should maintain its current pricing regime, which distributes costs across the board.’’
Entrust, formerly the Auckland Energy Consumer Trust, said consumers were rarely interested in regulatory consultation, but this issue had attracted strong interest.