8. Question No. 8—Energy and ResourcesJONATHAN YOUNG (National—New Plymouth) to the Minister of Energy and ResourcesQuestion No. 8—Energy and ResourcesJONATHAN YOUNG (National—New Plymouth): Thank you Mr Speaker. My question is to the Minister of Energy and Resources and asks—[Interruption]SPEAKER: Oh look! Order! The member will resume his seat. Amy Adams will stand withdraw and apologise again.Hon AMY ADAMS (National—Selwyn): I withdraw and apologise.8. JONATHAN YOUNG (National—New Plymouth) to the Minister of Energy and Resources: Does she expect the increases in long-term wholesale electricity prices to be reflected in household power bills; if so when?Hon Dr MEGAN WOODS (Minister of Energy and Resources): Short-term peaks in wholesale electricity prices driven by short-term gas infrastructure issues are unlikely to be passed on to the consumer as a result of how retailers manage risks and by smoothing their pricing structures. Under current market conditions gentailers may choose to pass on longer-term increases in wholesale prices; however this is likely to occur over a longer period of time. Longer-term price increases are likely to encourage new builds and the Government is looking forward to seeing new renewable generation being built as this—Hon Gerry Brownlee: Name one proposal.Hon Dr MEGAN WOODS: —is the lowest-cost generation. Finally we're currently seeing slightly elevated prices on the ASX futures market which reflects participants' guesses of what prices might be in the future. We're also seeing new generation being built which would see downward pressure on those prices.Jonathan Young: Will the wholesale electricity prices for calendar year 2020 which are 40 percent higher than this time last year be passed on to consumers and if not why not?Hon Dr MEGAN WOODS: What the member is talking about is the ASX futures prices that are being projected out. This is essentially risk-pricing or insurance that people take to hedge. What happens with that as new generation comes on board and is built is we will see those—Hon Gerry Brownlee: Name one—one project.Hon Dr MEGAN WOODS: —prices fall. We had 2000 megawatts of consented wind electricity—Hon Gerry Brownlee: There's none.Hon Dr MEGAN WOODS: Near where that member lives there's currently a new wind farm that is being consented at Waverley and is currently likely to come on stream. As they come on board those futures prices will fall.SPEAKER: Order! Mr Brownlee the member might take a call if he wants to ask a question. Actually he's asked the same question from his seat at least five times and it was actually answered. Hon Gerry Brownlee: No it wasn't.SPEAKER: Yes it was. The member should listen. Jonathan Young: I raise a point of order Mr Speaker. I believe that the question was very straightforward and the answer was full of conjecture around future builds. I asked whether the futures price that people are paying today which is 40 percent higher than last year will be reflected in future consumer prices and if not why not?SPEAKER: And the Minister said—and anyone who knows anything about the issue—that will depend on future builds. She should've said it more succinctly so the House can understand. Jonathan Young: I raise a point of order Mr Speaker. I asked a question around prices that have been contracted for the year 2020 so this is just over a year away and the infrastructure the Minister is talking about—they haven't even turned a sod in the ground. SPEAKER: Look I'm probably suffering from too much experience for three periods as being Minister of Energy none of which I asked for but what the House has been told is absolutely accurate—that future builds are built into contracting both for wholesale and retail pricing. That's what the Minister said not clearly enough and in an extended manner but the member's question has been answered.Hon Gerry Brownlee: Speaking to your assistance to the House Mr Speaker I would point out that there was no forward market during your time as Minister of Energy; and second it is a price being paid now and the question is whether that will be recovered by generators.SPEAKER: Well I don't want to get into a debate in answering the member but I give him an absolute assurance that power prices were being laid off between companies during that time and there was a market for retail contracts.Jonathan Young: So can the Minister inform the House that apart from the Waverley project of a 100-megawatt wind farm how many new generation builds will take place that will affect the 2020 electricity prices—it's just over a year away?Hon Dr MEGAN WOODS: As I also explained in my primary answer to the member: in the short term because of the way the market works those forward prices don't necessarily flow through. There are over 2000 megawatts of consented wind. We currently have a programme of work in place around updating those consents. If the member wants to put in writing a request for a list of projects I will happily furnish it to him.Rt Hon Winston Peters: In terms of the complained of electricity pricing structures market precisely who was responsible for it?Hon Dr MEGAN WOODS: This is a Government that has some concerns about the prices that consumers are paying for electricity. That is why we are currently undertaking a review. We have a view that for many people the market is broken. I note that the member who has been asking me questions thinks that we shouldn't meddle with it. We think we should have the backs of consumers.Jonathan Young: So how many megawatts of extra generation will come on stream within the next 12 months?Hon Dr MEGAN WOODS: More than are needed. I think the member is the only person who is scaremongering. What we know about forward projections of what we need over the long term which will have the largest impact on futures markets is that we need roughly a doubling of our generation by 2050. That member should stop scaremongering.Jonathan Young: I raise a point of order Mr Speaker. I believe I asked a reasonable question. The Minister has been defending against my questions—SPEAKER: No no get to the point of order.Jonathan Young: Well sir she didn't answer the question.SPEAKER: She addressed it.Hon Gerry Brownlee: Well the Minister's at least half the wind power that's coming on shortly!SPEAKER: I have a suggestion that there's a number of members who could be hooked up to it.