Mahuta Nanaia: Electricity Industry Bill — In Committee 
Mahuta Nanaia: Electricity Industry Bill — In Committee 
[Volume:667;Page:14130] 
Hon NANAIA MAHUTA (Labour—Hauraki-Waikato) 
: 
 Clause 3 is a very specific clause in the Electricity Industry Bill. When we listened to the previous speaker my colleague Chris Hipkins we heard him raise questions that were fundamental and germane to clause 3 “This Act binds the Crown”. The question is whether the Crown is capable of achieving what it said it would achieve. We have very serious questions about that because if this legislation addresses the huge differential between domestic and industrial energy consumers then the Crown will be bound by the solutions in the legislation. Will it be able to deliver on that issue? I think not. But we can explain that further on in the debate on the bill. Will this be the bill to ensure that there is oversight in terms of fairness of price setting in the electricity sector? The solutions offered in this bill all bind the Crown so we think not. We can explain that further later on. 
Will the asset swaps being promoted be the structural change that increases efficiency in the sector? We have grave concerns about the fact that assets swaps may not deliver what the Government thinks that they will yet the Government is bound by the solutions it has promoted to the public—that this is the structural change that will increase overall efficiency and perhaps price benefits to consumers. However as the point was made by Chris Hipkins and also in the first reading debate and subsequent submissions to the Finance and Expenditure Committee a number of concerns about asset swaps are raised of the structural change not delivering what the Government says it will. 
So we have a concern that clause 3 will not be honoured. We have a concern that clause 3 will not at all be delivered on in terms of ensuring that overall the bill delivers the gains and improvements to domestic consumers. We can debate that ad infinitum in the later stages of the bill but it is really important to ensure that the Minister of Energy and Resources takes a call at some point to uphold some of the expectations he has created on the solutions from this type of reform which will deliver benefits primarily to domestic consumers. We do know that there are huge differentials between the rates of increase of domestic energy prices in comparison to industry users. We know that domestic consumers are feeling the pinch and that they want the Crown to be bound by solutions that will work for them and that we do not think that this bill will deliver. So I am sure the Minister will be only too eager to take a call on that particular matter. 
It is a short clause but it is the most crucial clause. If the Minister is true to his word to many New Zealanders throughout the debate that this bill will deliver the gains and that it will tackle the price increases that many households have felt then he should be able to explain that in the Chamber today. We know that if anything is important in this bill to the people listening it is that they just want to know that it will benefit them in the pocket where it matters most. Far too many New Zealanders those on fixed incomes kaumatua are paying far too much for their monthly power bill. They want a solution that will deliver a real benefit step change to them at home and in the pocket. I do not think asset swaps will do that I do not think that the limited role of the Electricity Authority will achieve that and I certainly do not think in the immediate to medium term we will see a huge drop in price through shopping around. I think there are some huge challenges in the shopping around message that the Government is promoting. It applies to electricity but not gas if one is swapping one’s providers. I think there are some oversights in the way the Government is pushing through with this legislation. 
But as I said clause 3 is very short. It binds the Crown. My proposition is that it will bind the Minister in terms of the expectations he has certainly created that this bill will deliver benefits to domestic consumers and I do not think it will do that.