1 00:00:00,000 --> 00:00:02,719 Speaker 1: As Winstone Mills have made their announcement, hundreds of jobs 2 00:00:02,720 --> 00:00:04,240 Speaker 1: have lost in the center of the North Island and 3 00:00:04,240 --> 00:00:07,040 Speaker 1: the power price debates sparked back up again. Octopus Energy 4 00:00:07,120 --> 00:00:08,840 Speaker 1: has operated here for a couple of years, but the 5 00:00:08,920 --> 00:00:10,880 Speaker 1: major players in Britain, they've got these sites on the 6 00:00:10,960 --> 00:00:14,520 Speaker 1: Electricity Authority. Their COO as Margaret Cooney is, well, there's 7 00:00:14,520 --> 00:00:15,440 Speaker 1: Margaret morning to you. 8 00:00:16,239 --> 00:00:16,720 Speaker 2: Good morning. 9 00:00:16,880 --> 00:00:18,439 Speaker 1: So we're going to be a little bit careful here. 10 00:00:18,560 --> 00:00:21,320 Speaker 1: Are you using this to push your barrow where jobs 11 00:00:21,360 --> 00:00:23,160 Speaker 1: are lost? Because I know you're one of those retailers 12 00:00:23,200 --> 00:00:24,919 Speaker 1: who doesn't like the gent tailor model. Is that what 13 00:00:24,960 --> 00:00:25,640 Speaker 1: that's all about? 14 00:00:26,560 --> 00:00:33,280 Speaker 2: I think this situation demonstrates the problems in the market. 15 00:00:33,479 --> 00:00:39,360 Speaker 2: So the prices in the contracts market, which these large 16 00:00:39,360 --> 00:00:44,720 Speaker 2: industrial customers rely on, have been elevated well above average 17 00:00:45,800 --> 00:00:51,440 Speaker 2: price of new generation for six years. So six years 18 00:00:51,600 --> 00:00:55,680 Speaker 2: is enough time for new generation to be built. It's 19 00:00:55,880 --> 00:01:04,280 Speaker 2: enough time for intervention that electro feel authority. So you're 20 00:01:04,360 --> 00:01:07,920 Speaker 2: absolutely right that I'm highlighting the issue, but it's because 21 00:01:08,560 --> 00:01:12,760 Speaker 2: it's really important. Electricity is really the lifeblood of the 22 00:01:12,760 --> 00:01:14,680 Speaker 2: New Zealandercony. 23 00:01:14,440 --> 00:01:17,040 Speaker 1: Couldn't agree more. I'm just asking the question because I'm 24 00:01:17,040 --> 00:01:19,400 Speaker 1: not one hundred percent convinced it's purely power related this 25 00:01:19,440 --> 00:01:22,080 Speaker 1: particular job loss, So it could well be pulp and 26 00:01:22,120 --> 00:01:24,120 Speaker 1: logs and stuff like that, but that's not your domain. 27 00:01:24,520 --> 00:01:27,920 Speaker 1: Could you defend to any degree what has been said 28 00:01:28,200 --> 00:01:30,640 Speaker 1: when the previous government and power Onslow is in play. 29 00:01:30,640 --> 00:01:32,840 Speaker 1: When Onslow's in play, no one's investing in anything. 30 00:01:34,400 --> 00:01:38,720 Speaker 2: Look, I think the views of the market have identified 31 00:01:38,800 --> 00:01:43,800 Speaker 2: quite a number of competition issues, and if competition was 32 00:01:43,840 --> 00:01:49,000 Speaker 2: working well, we would have had new generation coming into market. 33 00:01:50,080 --> 00:01:53,040 Speaker 2: Things like Onslow are a bit of a distraction because 34 00:01:53,520 --> 00:01:58,680 Speaker 2: actually Onslow is a project that would have encouraged more 35 00:01:59,080 --> 00:02:03,280 Speaker 2: SHUBN theory have encouraged more renewable investment that we didn't 36 00:02:03,320 --> 00:02:05,440 Speaker 2: see that through that period. 37 00:02:05,640 --> 00:02:08,080 Speaker 1: What about the reading report this week? As I have 38 00:02:09,440 --> 00:02:14,000 Speaker 1: the pipeline of what's been announced is stupendous when that 39 00:02:14,040 --> 00:02:15,640 Speaker 1: gets built, problem solved, isn't it. 40 00:02:16,720 --> 00:02:19,640 Speaker 2: No, that's not right, because these projects aren't real until 41 00:02:19,639 --> 00:02:22,560 Speaker 2: they have finance committed to them. So if you go 42 00:02:22,639 --> 00:02:25,760 Speaker 2: through that pipeline and you look at what projects actually 43 00:02:25,840 --> 00:02:28,040 Speaker 2: have finance committed. 44 00:02:27,639 --> 00:02:29,240 Speaker 1: To them, isn't there money in the law for the 45 00:02:29,240 --> 00:02:31,560 Speaker 1: stuff you make it green people can't throw money at 46 00:02:31,560 --> 00:02:34,160 Speaker 1: you fast enough. Well. 47 00:02:34,200 --> 00:02:39,080 Speaker 2: One of the problems is that many international players would 48 00:02:39,120 --> 00:02:41,600 Speaker 2: like to enter the New Zealand market. We're one of those. 49 00:02:41,960 --> 00:02:45,680 Speaker 2: But we've identified that there are problems with competition and 50 00:02:45,720 --> 00:02:49,920 Speaker 2: the concentration of the gentailers and ultimately you need to 51 00:02:49,919 --> 00:02:54,520 Speaker 2: get to those structural issues which have been identified by 52 00:02:54,560 --> 00:02:58,360 Speaker 2: the OECD. So earlier in Jurne they came out with 53 00:02:58,440 --> 00:03:02,280 Speaker 2: the report that there were barriers to compet in New 54 00:03:02,360 --> 00:03:02,800 Speaker 2: Zealand and. 55 00:03:03,280 --> 00:03:05,040 Speaker 1: Where I think I do agree with you this EA. 56 00:03:05,120 --> 00:03:07,600 Speaker 1: I have no idea what they do. I mean, are 57 00:03:07,600 --> 00:03:09,400 Speaker 1: they asleep as anyone turned up at the office. What 58 00:03:09,400 --> 00:03:09,800 Speaker 1: do they do? 59 00:03:11,000 --> 00:03:13,960 Speaker 2: Well, look, they've got a statutory objective to act in 60 00:03:14,000 --> 00:03:16,960 Speaker 2: the long term intrist of New Zealand consumers. So let's 61 00:03:17,000 --> 00:03:19,440 Speaker 2: hope this morning they focus on that. 62 00:03:19,760 --> 00:03:21,440 Speaker 1: Okay, nice to talk to you. Appreciate it very much. 63 00:03:21,480 --> 00:03:24,960 Speaker 1: Margaret Kuner, who's the Octopus to Energy chief operating Officer. 64 00:03:25,160 --> 00:03:28,040 Speaker 2: For more from the Mic Asking Breakfast, listen live to 65 00:03:28,160 --> 00:03:31,239 Speaker 2: news talks that'd be from six am weekdays, or follow 66 00:03:31,280 --> 00:03:32,840 Speaker 2: the podcast on iHeartRadio.