Laban Luamanuvao Winnie: Electricity (Disconnection and Low Fixed Charges) Amendment Bill — Second Reading 
Laban Luamanuvao Winnie: Electricity (Disconnection and Low Fixed Charges) Amendment Bill — Second Reading 
[Volume:646;Page:15453] 
Hon LUAMANUVAO WINNIE LABAN (Minister of Pacific Island Affairs) 
: 
 Kia ora talofa lava and warm Pacific greetings. I rise to support this second reading of the Electricity (Disconnection and Low Fixed Charges) Amendment Bill. I rise with sadness as I remember Folole Muliaga and the tragedy of her death which should never have happened. We hope that something like that never happens again. The tragic circumstances surrounding Mrs Muliaga’s death shocked our nation. I personally will never forget the sorrow of visiting her husband her children her extended family and her community knowing that her death was so unnecessary. The way the Muliaga family dealt with losing their mother wife auntie daughter sister and friend provided all New Zealanders with a glimpse of how the generosity of spirit and the humanity of the Pacific people can deal with a horrific event leading to reconciliation and healing. 
Electricity is an essential service. Following the Muliaga tragedy the Electricity Commission began working with electricity retailers Government departments and our community organisations to develop guidelines understood by all dealing with disconnections. These strengthened guidelines require a sense of social responsibility from electricity retailers in protecting some of our most vulnerable whether it is for reasons of age health disability financial difficulty or if I may add culture and language. The guidelines make it clear that electricity providers must advise consumers having difficulty paying their bills of the avenues of assistance or help available to them from Government agencies and community service providers. Electricity retailers must take steps to identify vulnerable consumers and consult with the Ministry of Social Development before disconnecting. They must also identify and ensure that those reliant on electricity for medical equipment to maintain life are protected. 
The purpose of this bill is to enable regulation should compliance with the guidelines be unsatisfactory. This bill amends the Electricity Act 1992 to strengthen the regulation-making powers in relation to the disconnection of electricity and the low fixed-charge tariff options for domestic consumers. I strongly support the bill’s amendments to improve the ability to regulate regarding disconnection. This provides electricity retailers with terms and conditions for billing and payment options overdue accounts and disconnection processes the supply of services and a process for identifying consumers who would be at risk if their electricity was disconnected. 
The bill also amends the low fixed-charge tariff options for domestic consumers. Low fixed-charge regulations were introduced in 2004 to assist low-use electricity consumers and encourage greater energy efficiency. Currently over half of the households in the north of Auckland are on the low fixed-charge tariff as opposed to only 9 percent of households in and south of Christchurch. The amendment to increase the eligibility threshold from 8000 kilowatts to 9000 kilowatts for the low fixed-charge tariff will allow more households in Christchurch and the deep south excluding Westland to take advantage of the rate for low electricity as the higher threshold of 9000 kilowatts is closer to the average consumption of those living in that beautiful but colder part of the country. 
As already stated electricity retailers have been given the opportunity to follow the guidelines for electricity disconnections and this bill will allow for the guidelines to be implemented if they are not adhered to voluntarily. When announcing that the Electricity Commission was preparing guidelines Prime Minister Helen Clark said it was very important that electricity retailers had a clear idea of the Government’s and the public’s expectations. At a community forum in south Auckland a few weeks ago I was encouraged to hear from a budget adviser based in Mangere who used to have large numbers of people coming into his office because their power had been disconnected. He was pleased to report to the forum that this no longer happens. It should not have taken the death of Folole Muliaga for these changes to be implemented. However I am happy and pleased that the electricity retailers have taken notice following this tragic event and have taken the opportunity to follow the voluntary guidelines. I am also advised that companies have made overdue bills credit letters and automated phone calls clearer. Written information has also been provided in a number of languages including Samoan Tongan Maori and Japanese. I am confident that the industry will continue to follow the guidelines and act in a socially responsible manner with this bill providing the regulating power if necessary. 
In my maiden speech I said I would pursue a permanent interest in advocating and promoting the interests of women Pacific people Maori the elderly ethnic minorities and all New Zealanders who are struggling to live a life of dignity. At the time of Mrs Muliaga’s death I assured the Pacific community that our Government was taking this issue very very seriously. I am pleased to be part of a Government that is bringing this bill to the House protecting our disadvantaged consumers and ensuring the safety and well-being of all of our families in New Zealand. The Commerce Committee has cross-party support for this bill and I strongly commend it to the House. Thank you.