1 00:00:00,040 --> 00:00:01,680 Speaker 1: Don't look at your power bills for the next few 2 00:00:01,760 --> 00:00:04,000 Speaker 1: years people, they're going to get a bit ugly. It's 3 00:00:04,000 --> 00:00:07,600 Speaker 1: because the Commerce Commission has given permission to Transpower and 4 00:00:07,640 --> 00:00:10,320 Speaker 1: the local lines companies to up their charges. They're doing 5 00:00:10,360 --> 00:00:13,000 Speaker 1: this because they need to upgrade the network is weather 6 00:00:13,080 --> 00:00:15,520 Speaker 1: issues coming, more of us are using evs and not 7 00:00:15,720 --> 00:00:18,439 Speaker 1: enough gas, et cetera, putting more pressure on the network. 8 00:00:18,960 --> 00:00:23,360 Speaker 1: John John Harvard is the Major Electricity Users Group chairing, 9 00:00:23,480 --> 00:00:26,400 Speaker 1: is with us this morning. John, Good morning, Good morning. 10 00:00:26,640 --> 00:00:28,880 Speaker 1: What impact will this, if any, have on business? 11 00:00:30,240 --> 00:00:32,640 Speaker 2: Look, I think it's important to note that the impact 12 00:00:32,720 --> 00:00:37,760 Speaker 2: on certainly large sort of industrial manufacturers will be more 13 00:00:37,800 --> 00:00:41,920 Speaker 2: significant than what's going to impact households. And that's because 14 00:00:43,159 --> 00:00:46,720 Speaker 2: those large businesses don't buy their electricity from retailers, so 15 00:00:46,760 --> 00:00:49,159 Speaker 2: the percentage of their bill that comes from transmission and 16 00:00:49,200 --> 00:00:51,839 Speaker 2: distribution is higher. So what we're going to see is 17 00:00:51,920 --> 00:00:55,320 Speaker 2: those large employers, many of whom are already struggling their 18 00:00:55,440 --> 00:00:58,040 Speaker 2: electricity bills are going to go up considerably more than 19 00:00:58,080 --> 00:01:01,000 Speaker 2: about the five percent increase that households are looking at. 20 00:01:01,280 --> 00:01:03,800 Speaker 3: What percent are we talking, Well. 21 00:01:03,640 --> 00:01:05,920 Speaker 2: It's going to vary by businesses, so you get some 22 00:01:06,080 --> 00:01:09,440 Speaker 2: very large users like the Alu medium smelter at TY 23 00:01:09,520 --> 00:01:13,639 Speaker 2: who buy their electricity direct from the national grid. Others 24 00:01:13,680 --> 00:01:16,720 Speaker 2: will be going through their lines company, So it varies 25 00:01:16,720 --> 00:01:17,520 Speaker 2: by the businesses. 26 00:01:17,959 --> 00:01:19,000 Speaker 3: What's the max. 27 00:01:20,280 --> 00:01:24,720 Speaker 2: Ah, Well, some of them by oh, I think you're 28 00:01:24,720 --> 00:01:31,080 Speaker 2: looking at well over fifty percent of their bills for transmission, 29 00:01:31,160 --> 00:01:33,119 Speaker 2: transmission and distribution year. 30 00:01:33,040 --> 00:01:35,479 Speaker 3: And they'll be going up by do you know sort 31 00:01:35,480 --> 00:01:36,440 Speaker 3: of a range. 32 00:01:37,200 --> 00:01:40,160 Speaker 2: It's very hard to say. The Commission very consciously didn't 33 00:01:40,560 --> 00:01:43,840 Speaker 2: provide any estimates, and that's just because of the variability 34 00:01:43,880 --> 00:01:45,160 Speaker 2: of the nature of the businesses we're. 35 00:01:45,000 --> 00:01:47,440 Speaker 1: Talking about, right, Okay, do you think it's going to 36 00:01:47,440 --> 00:01:49,960 Speaker 1: be enough significant enough to put some of them out 37 00:01:50,000 --> 00:01:50,600 Speaker 1: of business? 38 00:01:50,680 --> 00:01:52,480 Speaker 3: We have seen that in the last couple of months 39 00:01:52,520 --> 00:01:54,120 Speaker 3: with spot prices. 40 00:01:55,480 --> 00:01:58,480 Speaker 2: Not in and of itself, but it's important to note 41 00:01:58,480 --> 00:02:00,440 Speaker 2: and this applies to households as well. It is what 42 00:02:00,480 --> 00:02:05,120 Speaker 2: the Commission has approved is just increases in transmission and distribution. 43 00:02:05,680 --> 00:02:09,120 Speaker 2: So generators, for instance, are planning to spend billions of 44 00:02:09,160 --> 00:02:12,919 Speaker 2: dollars on new generation, which we need, so that price 45 00:02:12,919 --> 00:02:15,840 Speaker 2: impact will come through as well, and also any increases 46 00:02:15,919 --> 00:02:19,600 Speaker 2: that electricity retailers make, so household bills are going to 47 00:02:19,639 --> 00:02:21,960 Speaker 2: go up by more than the ten dollars a month 48 00:02:22,040 --> 00:02:24,400 Speaker 2: that the Commission's flag. 49 00:02:24,560 --> 00:02:26,320 Speaker 3: Yeah, interesting, John, thank you very much for that. 50 00:02:26,360 --> 00:02:29,440 Speaker 1: Appreciate your time, John Harvard, Major Electricity Users Group there 51 00:02:29,520 --> 00:02:32,320 Speaker 1: saying that as a percentage, big businesses, big news is 52 00:02:32,360 --> 00:02:34,639 Speaker 1: will pay more because they pay more for the transmission 53 00:02:35,000 --> 00:02:37,640 Speaker 1: as a percentage of their outgoings. Just so that you know, 54 00:02:37,760 --> 00:02:41,440 Speaker 1: for consumers, it's approximately ten dollars a month for one 55 00:02:41,480 --> 00:02:43,760 Speaker 1: hundred and twenty dollars annually for the first year, and 56 00:02:43,800 --> 00:02:46,200 Speaker 1: then it is five dollars a month or fifty five 57 00:02:46,240 --> 00:02:51,280 Speaker 1: dollars annually for it for the year, every every for 58 00:02:51,360 --> 00:02:54,200 Speaker 1: the next four years, I should say, and that would 59 00:02:54,200 --> 00:02:56,800 Speaker 1: bring your title to around three hundred and forty dollars 60 00:02:56,840 --> 00:03:01,840 Speaker 1: per year extra on your power bills within five years. 61 00:03:02,760 --> 00:03:05,720 Speaker 1: For more from Early edition with Ryan Bridge, listen live 62 00:03:05,880 --> 00:03:08,520 Speaker 1: to News Talks it be from five a m. Weekdays, 63 00:03:08,800 --> 00:03:10,840 Speaker 1: or follow the podcast on iHeartRadio.