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: What recent reports if any has she seen on the state of the electricity market and does she believe Government policy has the ability to impact the market positively or negatively?Hon Dr MEGAN WOODS (Minister of Energy and Resources): I've seen the report of the Electricity Price Review established as part of the coalition agreement that found that under the structures of the previous Government the market is not working for everyone and that a two-tier retail market is developing leaving vulnerable people behind. In answer to the second part of the member's question this Government's policies are already having a positive impact. We have introduced a winter energy payment helping over a million Kiwis heat their homes over winter and we're insulating thousands of homes under our Warmer Kiwi Homes initiative. We've begun the electricity pricing review to ensure prices are affordable for families and we are leading a transition towards affordable renewable energy like hydrogen and away from expensive and vulnerable fossil fuels.Jonathan Young: So what is the average price for electricity futures per megawatt hour for December 2018 and how does that compare to the average of about $90 per megawatt hour for the last 12 months?Hon Dr MEGAN WOODS: What I can tell that member is that the short-term issues that we are seeing around our electricity network at the moment which are due to vulnerabilities in the gas supply issue—Jonathan Young: Point of order.Hon Dr MEGAN WOODS: I'll just finish the answer Mr Speaker—in the gas supply issue should see—SPEAKER: Hang on hang on. If someone wants a point of order they stand and they stay standing up. They don't sit down.Jonathan Young: Thank you sir. I raise a point of order Mr Speaker. I asked a very specific question about what the average—SPEAKER: Yes yes and the member hasn't finished her answer yet. The member might want to take a point of order at the end of it.Hon Dr MEGAN WOODS: The short-term vulnerabilities that we are seeing at the moment in our electricity system due to problems in the gas infrastructure that is seeing around the $600 figure should return to the normal figure by December. The frequent reports that I am getting from officials are that these issues should be repealed. What I will also tell the member is that a new wind farm has a levelised cost of electricity around $60-70 per megawatt hour—SPEAKER: OK that's enough thank you.Jonathan Young: I raise a point of order Mr Speaker. We are often chastened by not getting to the point and the answer never came but we had a complete monologue of recent events. I asked a very specific question that the Minister should be able to answer within one sentence.SPEAKER: And she did. It might have been buried in the middle.Hon Gerry Brownlee: Point of order. There is not any chance Mr Speaker that—SPEAKER: A point of order Gerry Brownlee.Hon Gerry Brownlee: Oh thank you for the recognition. There is not any chance that any analysis you might do of that answer would come anywhere near being an answer to the very specific question that was put in front of the Minister and I think it's unreasonable to dismiss the efforts that have been to—SPEAKER: No—sit down. Sit down.Hon Gerry Brownlee: Well you—SPEAKER: I'm requiring the member to sit down. He's made his point of order and if the member had—Hon Gerry Brownlee: No I haven't. I haven't finished.SPEAKER: Well you've made all the point of order you're going to make at the moment. The Minister quite specifically said that she has been advised that electricity prices in December will return to their normal levels. If that's not an answer—it's not only addressing it; it answered it.Jonathan Young: What is the average price for electricity futures per megawatt hour for December 2018 as can be found on the ASX and how does that compare to the average of about $90 per megawatt hour for the last 12 months?Hon Dr MEGAN WOODS: Given the complexities of what we're seeing in the electricity generation system I am not prepared to answer that question in this House at the moment but if the member wants to put it in writing I will provide him with a full answer.Jonathan Young: Shouldn't the Minister be paying close attention to the price of electricity futures given the signal they send about future retail prices?Hon Dr MEGAN WOODS: I can assure that member that what I am doing is paying very close attention to all the conditions around the security of supply in our electricity system. What I can tell the member is that one of the most important things to be monitoring at the moment is progress on repairs to the gas infrastructure problems that we are seeing at the moment that I receive frequent updates on. I can also advise that member that I am receiving frequent updates on the levels of the hydro lakes and I'll tell that member that hydro storage as at 2 November was at 62 percent of the historical average for this time of the year. The NZX energy data however that gives a daily update indicates that over the past four weeks up to 2 November hydro storage was at 71 percent and that is what a responsible Minister of energy should be monitoring.Hon Gerry Brownlee: I raise a point of order Mr Speaker. That was a most fascinating answer from the Minister. Perhaps you'd like to tell the House what question she was answering.SPEAKER: Well I think we'll go 1-all there. I won't punish the Minister for her interjection during that and I won't punish the member for his disorderly point of order.David Seymour: If the electricity market will be back to normal by December why has Genesis Energy ordered four shipments totalling 120000 tonnes of Indonesian coal to be delivered between December and February?SPEAKER: Order! Order! Sorry the member knows that that's not this Minister's responsibility.David Seymour: I raise a point of order Mr Speaker. The Minister has made a claim that the current problems are due to a gas shortage which will be alleviated by December. I'm asking how she can reconcile that with other facts that she should be across.SPEAKER: No that's not what the member asked. He said why". He didn't ask how it could be reconciled.Hon Gerry Brownlee: I raise a point of order Mr Speaker. The "why" question goes directly to the prime purpose of having a Minister of Energy and Resources—it is to make sure that there is security of supply in the market. Now the question is—and I think Mr Seymour's hit it on the head—if there's no problem as the Minister said—SPEAKER: I accept that—that point of order is a much better one than the one we had previously. The Minister will address the question.Hon Dr MEGAN WOODS: Well quite clearly Genesis Energy does not have the kind of confidence in the infrastructure around the gas supply system that the Opposition and the fossil fuel industry seem to have. What recent events are showing us is what a precarious security of supply situation we're in when we need to rely on gas for peaking. That's why this Government is intent on building a resilient energy system with more resilient forms of renewable energy.David Seymour: Will the Minister be taking any action to guide Genesis to make better investment decisions given they're clearly out of step with the rest of the market?Hon Dr MEGAN WOODS: There have been decisions made already around the phasing out of using the coal Rankine units at Huntly. This Government is giving many signals and guidance to companies such as Genesis such as carbon-neutrality by 2050. I think that provides more than enough system and what this Government is doing in putting in place the long-term transition planning that is required."