10. Question No. 10—Energy and ResourcesJONATHAN YOUNG (National—New Plymouth) to the Minister of Energy and ResourcesQuestion No. 10—Energy and Resources10. JONATHAN YOUNG (National—New Plymouth) to the Minister of Energy and Resources: Does she stand by all of her statements policies and actions?Hon DAVID PARKER (Minister for the Environment) on behalf of the Minister of Energy and Resources: Yes in the context they were made and undertaken.Jonathan Young: Does she accept the findings of the interim Climate Change Commission that her Government's policy of forcing the market into producing 100 percent renewable electricity will push up power prices for New Zealand families by an average of $300 a year?Hon DAVID PARKER: I'm confident that the transition that New Zealand is on to decarbonising electricity and other parts of our fossil fuel system will result in lower energy costs to New Zealanders than would otherwise be the case.Jonathan Young: I raise a point of order Mr Speaker. I just asked whether she would accept the findings of the interim Climate Change Commission.SPEAKER: Well I think if the member listened really carefully to the end of the answer he got a very direct answer.Jonathan Young: When the Minister said yesterday she does not think elevated wholesale power prices will flow through to higher household prices however with wholesale prices 60 percent higher through all of this year compared to the same period of last year are we seeing a structural change in the market that could build in these higher prices?Hon DAVID PARKER: We did see a spike in wholesale gas and electricity prices over the last year caused by problems in gas infrastructure—pity we didn't have a few more renewables at the time. I would note that the latest data shows that electricity prices at retail are now 1.6 percent higher than they were last year which is lower than the rate of inflation and that as a consequence the Electricity Retailers' Association have put out a release today—I suspect after the member submitted his question—saying household power bills have hit a 10-year low.Jonathan Young: I raise a point of order Mr Speaker. The member referred to a spike whereas the question alluded to a 60 percent increase average over the country for the last 8½ months which is not a spike.SPEAKER: Well it depends on one's definition of spike". It's one hell of a spike but it could be described as a peak.Jonathan Young: I raise a point of order Mr Speaker. The question was in that context whether we are seeing a structural change and I don't think he addressed the question.SPEAKER: If the member listened to the end of the reply—unless he's suggesting that the lowest prices for 10 years is a structural change which I'm not sure that he was I think the question was certainly not only addressed but answered.Jonathan Young: So when she said yesterday that renewable electricity is the cheapest form of generation that will bring down electricity prices when does she expect the price per unit to fall knowing that today's announcement was not about the price per unit but New Zealanders using less electricity?Hon DAVID PARKER: On behalf of the Minister the cheapest-cost new increments to supply in New Zealand are wind power and geothermal power. Wind power in particular has decreased in cost over recent years and continues to go down. Gas prices go up.Jonathan Young: Is the Minister aware of news reports that have come out from Georgetown which moved to 100 percent renewable electricity in 2012 which increased the cost of electricity by $1000 per household and what will she do to ensure that doesn't occur here?Hon DAVID PARKER: On behalf of the Minister I'm aware from talking to the former Minister of Energy in the last Labour Government David Parker that at the time when the changes were made towards renewable electricity there was a prediction made by the then Opposition that this would increase electricity prices. We have seen since that that has not been the case and as I said despite the increasing proportion of New Zealand's electricity that comes from electricity prices in the last period are the lowest that they've been for a long time.Jonathan Young: So if the Minister who has said in the past that she won't die in the ditch over that 100 percent renewable electricity target—would she rather we use gas which has decreased in its use this last year or use coal which has increased by 134 percent to back up and support a largely renewable electricity system?Hon DAVID PARKER: Neither. I'd rather see renewables used. I would also note that the problems that the member is referring to were actually problems in gas distribution; they weren't a shortage of gas. I'm advised that we have more than a decade of forward gas available to the New Zealand electricity market and that's what the average has been for quite a long time."