1 00:00:00,200 --> 00:00:03,360 Speaker 1: Now. Over the weekend, a group of well known organizations 2 00:00:03,520 --> 00:00:06,720 Speaker 1: published an open letter to the Prime Minister calling for 3 00:00:06,720 --> 00:00:09,880 Speaker 1: the immediate reform to our energy sector. They believe the 4 00:00:09,880 --> 00:00:12,720 Speaker 1: current system holds back productivity and isn't in the best 5 00:00:12,800 --> 00:00:15,960 Speaker 1: interest of New Zealanders. And that's true. And some of 6 00:00:15,960 --> 00:00:19,759 Speaker 1: the signatories include the EMA, two Degrees and Consumer New Zealand. 7 00:00:20,120 --> 00:00:23,080 Speaker 1: So from Consumer we've got their chief executive, John Duffy, 8 00:00:23,120 --> 00:00:25,000 Speaker 1: who's woken up early for us. Good morning to you, John, 9 00:00:26,360 --> 00:00:26,840 Speaker 1: Good morning. 10 00:00:26,840 --> 00:00:27,680 Speaker 2: How's it going good? 11 00:00:27,720 --> 00:00:28,680 Speaker 1: Why an open letter? 12 00:00:31,320 --> 00:00:34,120 Speaker 2: Well, we think the time is right. I mean, there's 13 00:00:34,159 --> 00:00:36,360 Speaker 2: a lot of pressure coming from a lot of sectors 14 00:00:36,680 --> 00:00:41,640 Speaker 2: and we really wanted to demonstrate that quite a disparate 15 00:00:41,720 --> 00:00:47,519 Speaker 2: group of organizations with lots of different purposes can actually 16 00:00:47,840 --> 00:00:51,440 Speaker 2: get together and be quite aligned on an issue as 17 00:00:51,479 --> 00:00:55,400 Speaker 2: important as this. And we've got a number of things 18 00:00:55,440 --> 00:00:57,280 Speaker 2: that are happening in the sector and one of the 19 00:00:57,360 --> 00:01:01,360 Speaker 2: key ones is that there's a brand new review of 20 00:01:01,560 --> 00:01:05,000 Speaker 2: how the sector is performing sitting on the Minister's desk. 21 00:01:05,560 --> 00:01:08,360 Speaker 2: The Cabinet and the Minister are considering their options right now, 22 00:01:08,400 --> 00:01:10,759 Speaker 2: and we really wanted to send a message to say, hey, 23 00:01:11,319 --> 00:01:14,280 Speaker 2: you've got this huge group of organizations here that's really 24 00:01:14,319 --> 00:01:17,120 Speaker 2: worried about the direction we're heading in. It's time to 25 00:01:17,120 --> 00:01:20,480 Speaker 2: make some good decisions that help both industry and consumers. 26 00:01:20,720 --> 00:01:23,720 Speaker 1: Yeah, is Simon Watt's doing a good enough job, as 27 00:01:23,720 --> 00:01:25,600 Speaker 1: you say. He's got this report on his desk. It's 28 00:01:25,640 --> 00:01:29,400 Speaker 1: into regulatory settings. It's not about Dam's or geothermalo any think, 29 00:01:29,720 --> 00:01:32,080 Speaker 1: And he says the government will make an announcement in 30 00:01:32,160 --> 00:01:36,920 Speaker 1: due course. Is he sitting on his hands? No? 31 00:01:37,000 --> 00:01:40,440 Speaker 2: I don't think. So. These are big, big decisions, right, 32 00:01:40,520 --> 00:01:44,560 Speaker 2: So we've tried to kind of convey the importance of 33 00:01:44,560 --> 00:01:47,280 Speaker 2: it in the letter. This is one of the key 34 00:01:47,360 --> 00:01:51,680 Speaker 2: inputs into our economy. If we can't fuel our industry 35 00:01:51,800 --> 00:01:55,360 Speaker 2: and we can't support the well being of our people 36 00:01:55,480 --> 00:02:02,320 Speaker 2: with affordable electricity, we're in real trouble as a nation. 37 00:02:02,640 --> 00:02:06,720 Speaker 2: So we don't necessarily want the minister to rush into 38 00:02:06,800 --> 00:02:10,160 Speaker 2: a knee jerk reaction. We need decisions to be well 39 00:02:10,200 --> 00:02:15,440 Speaker 2: thought through and measured. But I guess we would like 40 00:02:15,480 --> 00:02:18,800 Speaker 2: to see submergency in the decision making, and we anticipate 41 00:02:18,840 --> 00:02:21,359 Speaker 2: something coming in the coming months, so that is quick enough. 42 00:02:21,440 --> 00:02:25,200 Speaker 1: Yeah, So that is to ginger him up. Your letter 43 00:02:25,800 --> 00:02:28,680 Speaker 1: very accurately describes the problems. Of course, we're all about 44 00:02:28,680 --> 00:02:32,320 Speaker 1: the solutions here, So would you like to help the 45 00:02:32,360 --> 00:02:35,840 Speaker 1: government into coming up with a solution for the energy sector. 46 00:02:37,800 --> 00:02:42,160 Speaker 2: Okay, absolutely, And obviously, given the organization that I represent, 47 00:02:42,440 --> 00:02:45,880 Speaker 2: i'd encourage the government to be putting people at the 48 00:02:45,919 --> 00:02:50,480 Speaker 2: center of any decision making that it's doing, because at 49 00:02:50,520 --> 00:02:56,000 Speaker 2: the moment, consumers aren't really or eltricity consumers, the people 50 00:02:56,000 --> 00:03:00,360 Speaker 2: of New Zealand, households aren't really that much of actor 51 00:03:00,720 --> 00:03:03,919 Speaker 2: and how our system operates. We think about sure, security 52 00:03:03,960 --> 00:03:08,200 Speaker 2: is supply, that's important, keeping the lights on, but really 53 00:03:08,240 --> 00:03:12,320 Speaker 2: our focus is Unfortunately, the way the market built is 54 00:03:12,360 --> 00:03:17,000 Speaker 2: built is on making returns for shareholders. So, like many 55 00:03:17,040 --> 00:03:21,320 Speaker 2: industries across the economy, the way the market is geared, 56 00:03:21,680 --> 00:03:26,480 Speaker 2: businesses operate to produce shareholder return, which is really important because, 57 00:03:26,680 --> 00:03:31,280 Speaker 2: particularly in a capital intensive industry like electricity generation, you 58 00:03:31,320 --> 00:03:34,440 Speaker 2: need money coming in so that you can build things. Absolutely, 59 00:03:35,040 --> 00:03:40,040 Speaker 2: but when the return to shareholders is outweighing the service 60 00:03:40,040 --> 00:03:44,560 Speaker 2: that's been provided to customers, and the return to shareholders 61 00:03:44,800 --> 00:03:48,800 Speaker 2: is being prioritized over even investing new generation, we know 62 00:03:48,880 --> 00:03:49,840 Speaker 2: we've got a problem. 63 00:03:50,040 --> 00:03:52,400 Speaker 1: Good stuff, John Duffy. He as the chief executive of 64 00:03:52,520 --> 00:03:54,040 Speaker 1: Consumer New Zealand. 65 00:03:54,720 --> 00:03:57,680 Speaker 2: For more from earlier edition with Ryan Bridge, listen live 66 00:03:57,840 --> 00:04:01,160 Speaker 2: to News Talks that Be from five am, or follow 67 00:04:01,240 --> 00:04:02,760 Speaker 2: the podcast on iHeartRadio.