The Sunday Star Times seems to like the issue of energy prices. So far in March they have had:
- A report stating that energy companies are setting prices too high,
- A report stating that energy companies are setting prices too low.
Both of these come from Sunday Star Times reporter – Tim Hunter. So I wonder which report he believes? I wonder what report I would believe if I actually got to see them. I wonder what report you guys would believe!
8 comments
insider says:
March 24, 2009 at 10:30 am (UTC 12 )
there is also this interesting and ‘timely’ piece for MRP by Grant Read http://www.mightyriverpower.co.nz/content/1797/Electricity%20Market%20Economics-%2090302.pdf
The Government is going to find itself in a real tangle on this. There is no doubt that Wolak will cane the industry – you only have to look at his track record and recent speeches on closely related issues.
At the same time the govt has bought an industry inspired regulatory reform agenda and has said they want more out of SOEs. These things can’t all happen.
Matt Nolan says:
March 24, 2009 at 10:33 am (UTC 12 )
@insider
Very interesting. I would like a clear indication of what is exactly wrong with the industry before we change the regulatory arrangement.
Is their any issues with security of supply? Are prices excessive? Are prices too low? Ultimately, it is just a good – but it is a good that people really care about, which allows it to be used as political capital. I would just like to see some objective answers
insider says:
March 24, 2009 at 10:48 am (UTC 12 )
@Matt Nolan
SUrely you are not asking for evidence….? Isn’t enough that TRanspower says it is so? Seems to be good enough for govt. Evidence can be so annoying.
Matt Nolan says:
March 24, 2009 at 10:49 am (UTC 12 )
@insider
Evidence gives me things to talk about – and I love talking
insider says:
March 24, 2009 at 11:11 am (UTC 12 )
The time for talking is over, this is a time for doing. Did you not get the memo?
Matt Nolan says:
March 24, 2009 at 11:12 am (UTC 12 )
@insider
Doing? I’m an economist I don’t really “do”
Bernard Hickey says:
March 25, 2009 at 10:54 am (UTC 12 )
Matt,
I’ve asked Frank Wolak for his full report. It’s out soon, I’m told by other academics. Should be an interesting read.
cheers
Bernard
Matt Nolan says:
March 25, 2009 at 10:56 am (UTC 12 )
@Bernard Hickey
Ahh very good. Definitely give me a heads up when it is out and I’ll have a skim over it – and try to put a post up, maybe