Worth Richard: Electricity (Disconnection and Low Fixed Charges) Amendment Bill — Third Reading 
Worth Richard: Electricity (Disconnection and Low Fixed Charges) Amendment Bill — Third Reading 
[Volume:646;Page:15604] 
Dr RICHARD WORTH (National) 
: 
 I follow a Labour speaker who has indicated support for this legislation and that is assuredly National’s position also. We support the passage of the Electricity (Disconnection and Low Fixed Charges) Amendment Bill. 
The previous speaker Winnie Laban spoke on only one aspect of the bill: that which touched on the question of the vulnerability of particular consumers. The bill is actually wider than that; it has two unrelated purposes. The first part of the bill amends the definition of “low-use consumer” in section 172B of the Electricity Act so that regulations can be made that will enable a greater number of low-use consumers in the lower South Island to benefit from a low fixed-charge tariff option. The second part of the bill—which the previous speaker addressed—amends the Electricity Act to ensure that regulations can be made in relation to the content of the disconnection guidelines developed by the Electricity Commission. I will deal just very briefly with both parts. 
First I will provide some background on the issue of low fixed charges. In 2004 the Electricity Act was amended to enable the making of regulations that required a low fixed-charge tariff option for low-use domestic consumers. The regulations made under that Act were made for the purpose of assisting low-use domestic customers and to encourage energy efficiency. Obviously with high fixed charges consumers gain very little financial benefit from reducing their consumption. The regulations required networks and retailers to make available a low fixed-charge tariff option to all domestic consumers whom they service who have consumption at their primary dwelling of less than 8000 kilowatt hours per annum. The same threshold was used across the entire country. 
The review that was carried out by the Ministry of Economic Development identified that an adjustment to the eligibility threshold was warranted because far fewer consumers are on the low fixed-charge tariff in the lower South Island than in other parts of the country. So really this part of the legislation is about providing a framework to set for the lower South Island—the area from Christchurch southwards excluding the West Coast—a threshold of 9000 kilowatt hours per annum which is the average domestic consumption level for that region. An amendment to the Act is required before the eligibility criteria can be adjusted. 
In respect of the second part of the bill—which concerns changes to the electricity governance regulations—it is a trite saying a matter of legal principle that hard cases make bad law. The previous speaker dealt with the circumstances surrounding the Muliaga death. This is not a case where hard cases make bad law and these changes are clearly warranted. The bill responds in an effective way to concerns about the disconnection practices of electricity retailers particularly in relation to vulnerable consumers. 
Other members have explained and will continue to explain aspects of the bill. Suffice it to say that National supports this legislation. That is to be seen from the fact that when the bill went to the Commerce Committee it came back with no changes made to it.