1
00:00:00,280 --> 00:00:01,160
Speaker 1: Bryan Bridge.

2
00:00:01,520 --> 00:00:05,840
Speaker 2: I know smaller electricity retailers and generators are worried that

3
00:00:05,920 --> 00:00:09,640
Speaker 2: impending reforms to the power market won't create the level

4
00:00:09,680 --> 00:00:12,040
Speaker 2: playing field that we have been promised it will. The

5
00:00:12,080 --> 00:00:15,800
Speaker 2: Electricity Authority has proposed a non discrimination rule that will

6
00:00:15,840 --> 00:00:18,599
Speaker 2: force the gent tailors to play fear when they're deciding

7
00:00:18,600 --> 00:00:21,040
Speaker 2: where to sell power to their own retail arms or

8
00:00:21,079 --> 00:00:25,640
Speaker 2: to other retailers. The smaller players Octopus Energy, two Degrees

9
00:00:25,760 --> 00:00:28,840
Speaker 2: Electric Kew and some other smaller players. They've now written

10
00:00:28,880 --> 00:00:31,560
Speaker 2: to the EA saying this rule doesn't go far enough.

11
00:00:31,840 --> 00:00:33,960
Speaker 1: Who are you Bert? Is Electric? Keywy CEO? And is

12
00:00:34,000 --> 00:00:34,159
Speaker 1: with me?

13
00:00:34,240 --> 00:00:34,400
Speaker 3: Now?

14
00:00:34,400 --> 00:00:35,160
Speaker 1: Who are good evening?

15
00:00:35,720 --> 00:00:36,800
Speaker 3: It's good evening, Ryan?

16
00:00:38,040 --> 00:00:39,640
Speaker 1: How much further does it need to go? What do

17
00:00:39,680 --> 00:00:40,400
Speaker 1: you want to happen?

18
00:00:41,840 --> 00:00:47,800
Speaker 3: Hey? Look, our proposal for the non discrimination obligations is

19
00:00:47,840 --> 00:00:54,000
Speaker 3: that it should apply to all the generation that the

20
00:00:54,120 --> 00:00:58,320
Speaker 3: gentailers supply to their own retail arms. In the current

21
00:00:58,440 --> 00:01:02,720
Speaker 3: form of these rules, it's only applying to what's called

22
00:01:03,040 --> 00:01:08,840
Speaker 3: uncommitted capacity, which could end up being a very very small,

23
00:01:08,959 --> 00:01:13,160
Speaker 3: insignificant amount of the total volume, and that just doesn't

24
00:01:13,160 --> 00:01:15,119
Speaker 3: create the level playing field that we need.

25
00:01:15,760 --> 00:01:18,440
Speaker 1: Right, what proportion of the output is it.

26
00:01:19,880 --> 00:01:24,679
Speaker 3: We actually don't know the exact proportion, but it could

27
00:01:24,720 --> 00:01:28,440
Speaker 3: be as low as zero if you interpreted the rules

28
00:01:28,520 --> 00:01:32,520
Speaker 3: to their fullest extent. There is going to be more

29
00:01:32,520 --> 00:01:35,640
Speaker 3: debate on this between the industry and the authority in

30
00:01:35,680 --> 00:01:40,680
Speaker 3: the coming days, but we think that effectively it's insignificant

31
00:01:40,720 --> 00:01:43,200
Speaker 3: to create the level of competition that is going to

32
00:01:43,240 --> 00:01:46,440
Speaker 3: create downward pressure on electricity prices for.

33
00:01:46,520 --> 00:01:49,760
Speaker 2: Kiwis and the definition bit to Lucy Goosey for your liking.

34
00:01:49,840 --> 00:01:50,960
Speaker 1: By the sounds of it too.

35
00:01:51,440 --> 00:01:54,720
Speaker 2: We are what about this idea that instead, like in

36
00:01:54,760 --> 00:01:57,160
Speaker 2: terms of a consumer, like you know, I buy electricity,

37
00:01:57,880 --> 00:02:03,040
Speaker 2: instead of them lowering the price at which they charge

38
00:02:03,200 --> 00:02:08,919
Speaker 2: the smaller retailers, they just don't give themselves the same

39
00:02:09,160 --> 00:02:13,960
Speaker 2: sweetheart deals and keep the price higher for all consumers

40
00:02:14,000 --> 00:02:17,000
Speaker 2: across the board. Yeah.

41
00:02:17,040 --> 00:02:20,600
Speaker 3: So what we think, Ryan, is that the problem. And

42
00:02:20,639 --> 00:02:22,960
Speaker 3: I know that there has been a lot of commentary

43
00:02:23,000 --> 00:02:25,160
Speaker 3: from the gentail to say, hey, this is actually going

44
00:02:25,200 --> 00:02:29,240
Speaker 3: to push up the price of electricity for consumers because

45
00:02:29,880 --> 00:02:34,000
Speaker 3: we are cross subsidizing it. We think the problem should

46
00:02:34,040 --> 00:02:38,160
Speaker 3: actually be flipped. Why are those contract prices that they're

47
00:02:38,160 --> 00:02:42,400
Speaker 3: earning off this generation so high? So it's not that

48
00:02:42,760 --> 00:02:47,160
Speaker 3: reta that consumers are the prices that they're paying should

49
00:02:47,160 --> 00:02:50,240
Speaker 3: be higher. In fact, they should be much lower, because

50
00:02:50,360 --> 00:02:52,920
Speaker 3: we can see that the long run cost of this

51
00:02:53,040 --> 00:02:57,519
Speaker 3: generation investment is actually around you know, forty to fifty

52
00:02:57,560 --> 00:03:02,000
Speaker 3: dollars permit, what are lower than what the contract market is.

53
00:03:02,120 --> 00:03:05,240
Speaker 3: So what we think is what you need is rules

54
00:03:05,240 --> 00:03:09,520
Speaker 3: to actually enforce the levels of competition that will bring

55
00:03:09,560 --> 00:03:14,720
Speaker 3: those contract prices down and then that's better for all.

56
00:03:15,520 --> 00:03:18,440
Speaker 1: All kiwis how we appreciate your time this evening. How

57
00:03:18,520 --> 00:03:21,680
Speaker 1: we both the Electric key we CEO. For more from

58
00:03:21,760 --> 00:03:24,840
Speaker 1: Heather Duplessy Allen Drive, listen live to news talks.

59
00:03:24,880 --> 00:03:28,080
Speaker 2: It'd be from four pm weekdays, or follow the podcast

60
00:03:28,160 --> 00:03:29,160
Speaker 2: on iHeartRadio