The Government’s Policy Statement (GPS) on electricity clearly sets out the Government’s role in delivering affordable and secure electricity at internationally competitive prices, said Energy Minister, Simeon Brown.
Mr Brown said New Zealand’s economic growth and prosperity relies on Kiwi households and businesses having access to affordable and secure electricity at internationally competitive prices.
“This is one of the Government’s top priorities,” he said.
The GPS outlines the Government’s expectation that the Electricity Authority will drive a more competitive, fuel agnostic, electricity sector that works in the long-term interests of consumers and avoid excessive prices.
“We know that in the coming years New Zealand will see greater electrification of transport and process heat. This will shift demand from imported fuels towards domestically produced electricity, and see more distributed electricity generation brought online to bolster regional resilience,” said Mr Brown.
“The Government has a goal of doubling renewable electricity generation to meet this increase in demand, and has committed to policy decisions that would enable more private investment in generation.
“The GPS provides certainty about the Government’s role in the sector. This certainty will help create a stable investment environment for renewable energy to drive affordability through security of supply.
“Previous government interventions pushed prices up and had a chilling effect on investment. The GPS confirms the role for Government is to ensure the market settings are right, to enable the private sector to invest and consumers to take advantage of innovations,” Mr Brown says.
The Electricity Authority will now have regard to the GPS as they work to ensure the market setting are right to unleash private sector investment and to enable consumers to take advantage of innovations in energy supply.
Read the Government Policy Statement on Electricity – October 2024.pdf.
