O'Connor Damien: Electricity (Disconnection and Low Fixed Charges) Amendment Bill — Second Reading 
O'Connor Damien: Electricity (Disconnection and Low Fixed Charges) Amendment Bill — Second Reading 
[Volume:646;Page:15446] 
Hon DAMIEN O’CONNOR (Minister of Tourism) 
: 
 I will take the opportunity to speak briefly on this bill which I think is very sensible legislation and another necessary piece I guess in putting Humpty-Dumpty back together again. I acknowledge the efforts of my colleague the Hon David Parker in the part he has played because the reality is that when Max Bradford deregulated the electricity industry Humpty-Dumpty fell off the wall. Since that time we have been trying to put him back together again so that we have a fully integrated energy system delivering reliable electricity to people up and down this country. There were investments over decades and decades to have an integrated system but of course that was all thrown to the wind by the National Party. 
Mr Heatley who spoke just before clearly identified the tried and disproved theory that the market will deliver to everyone. Well the fact is that it will not and in electricity in particular we need to protect the integration the coordination and the cooperation of all participants to make sure that when we turn the switch on the lights will come on as well—particularly for those consumers who rely on it. 
This bill as my colleague said does two things. It strengthens the regulation-making powers if needed to ensure that the disconnection practices of electricity retailers adequately protect the needs of vulnerable customers—people who are relying on electricity for their lives in effect. In the tragedy last year in May—where I am sure the electricity retailer had no intention of causing harm in any way but the cold hard market reality of disconnection applied because bills were not paid—we saw unfortunately the death of a New Zealander. We do not want that situation to continue and I think it is good that we have legislation that allows these regulations to be made. It does not impose them; it just allows them to be made. 
The next component of the bill is something I have some knowledge of in coming from the West Coast. We are fortunate that although we live in a mild climate it does not get freezing cold but there is the need for energy and many constituents have access to coal. So over those winter periods they have used relatively small amounts of energy. They are superannuitants and they are beneficiaries for the most part and they watch every penny because they have to—and good on them. 
The bill raises the threshold of the low fixed-charge eligibility so that it allows them to use not 8000 kilowatt hours but up to 9000 kilowatt hours on average below which they will be entitled to a low fixed-charge regime from the retailer. That means there is an incentive for them to use less power and they will not be penalised adversely as they were in the past. 
Shane Ardern 
: They’ll get taxed for greenhouse gas emissions. 
Hon DAMIEN O’CONNOR 
: Again it identifies the need for the Government to intervene through regulation through guidance in a way that the National Party I tell Mr Ardern would not have any idea of. He still thinks that the market will deliver to him and his farming mates. But they know well that they need some guidance from time to time. They need guidance from time to time and regulation to ensure we have a good sound economy that will not run off the rails. 
This bill is necessary to take us one step further down the path to try to reconstruct a fully coordinated energy system that provides the right incentives for energy efficiency and that allows people to come in with new ideas but that protects consumers and businesses from the rorts that could occur under a market model because electricity is a vital component of both industry and private living. It is therefore important that we have guidance through the Electricity Commission. Again I applaud the efforts of the Hon David Parker and his oversight— 
Shane Ardern 
: What’s he going to do for the West Coasters who burn coal? 
Hon DAMIEN O’CONNOR 
:—of changes that have further improved the regime to ensure that this economy can carry on particularly in rural areas. Mr Ardern does not give a damn because he thinks that the market will deliver to his rural constituents. No no we do require guidance particularly in the area of electricity. In fact one of the key proposals in Max Bradford’s wonderful restructuring was that beyond 2013 there would be no obligation to provide electricity to rural consumers. What a ridiculous proposal! The Government has stepped in and said that that obligation will continue as it rightfully should but Mr Ardern and his National colleagues led by Max Bradford some time ago in restructuring the industry thought that they could remove the obligation for lines companies to provide for rural consumers. This is the heart and soul of the New Zealand economy; these are the people out shearing the sheep milking the cows and living in rural houses. These people need electricity but Max Bradford and the National Party said that it was not necessary to supply beyond 2013. Well we have stepped in and said that that obligation will continue. We will also continue to step in where necessary and when the Electricity Commission comes to us seeking further guidance to ensure that we have a fully integrated working operative and fair system of delivering electricity across this country so that we can get on and develop the economy in the way that it needs to be developed. 
If we reverted to the policies that drove the electricity sector under National we would have people ripped off left right and centre under the market model we would have no obligation to supply—unless there was an opportunity—and we would see a rundown of electricity supply to the rural sector; there is no doubt about it. Mr Ardern knows that. He knows full well that his party’s restructuring of electricity was flawed. It failed and without the passage of legislation such as this that we have in the House today not only would we see social ruin in this country but we would have economic ruin as well. I applaud the initiatives of my colleagues and Mr Parker in moving this legislation forward and I look forward to Mr Ardern getting up and saying something in support of his rural constituents. 
Does Mr Ardern agree with the Government when it says that there should be an ongoing obligation on lines companies to provide electricity beyond 2013 or does he say as his party says there should be no obligation? I look forward to him standing up and taking the opportunity that he has in the House now. He has the opportunity to stand up and say what he is doing for his rural constituents. We need to pass this legislation to protect vulnerable New Zealanders who rely on electricity for their lives and we need to pass it to ensure there are incentives for energy efficiency for low users of electricity in regions such as the West Coast—where there are options other than electricity but where they would otherwise under the market model be hammered by high lines charges and probably by high unit costs under a National Government as well without any oversight or regulation. 
It is really important that this legislation progresses. I am very happy to have taken the call and taken the opportunity to put a few points on the table and to challenge the National members and ask whether in 2013 they would remove the obligation to continue to supply rural constituents and rural electricity users. That is maybe one little question that National members could answer because they cannot answer any of the big ones particularly around the issue of electricity. Would those members sell off Meridian Energy? Would they sell off the State-owned energy generators in this country? I put it to the House that they would have to in order to pay for their extravagant tax cut promises although we never know. That might change tomorrow as happens with most National Party policy.