1
00:00:00,080 --> 00:00:03,120
Speaker 1: The power business heading to another winter, a price increases

2
00:00:03,120 --> 00:00:05,720
Speaker 1: in cold impiltation. Mike Rhant from Meridi and yesterday talked

3
00:00:05,720 --> 00:00:08,160
Speaker 1: to a lack of access to the contingent storage. Meantime,

4
00:00:08,200 --> 00:00:10,319
Speaker 1: the government gave the hard word as you're aware of

5
00:00:10,360 --> 00:00:12,200
Speaker 1: the gent tailors to tidy up there deals with the

6
00:00:12,240 --> 00:00:15,320
Speaker 1: retail arms and not stack the market anyway. Energy Minister

7
00:00:15,360 --> 00:00:16,280
Speaker 1: Simon Watts is with us.

8
00:00:16,320 --> 00:00:17,840
Speaker 2: Good morning, very good morning, Mike.

9
00:00:17,840 --> 00:00:20,840
Speaker 1: Greg Broad question, how worried about winter are you?

10
00:00:21,560 --> 00:00:24,600
Speaker 2: I am worried, Mike. Situation is pretty acute. I think

11
00:00:24,640 --> 00:00:26,800
Speaker 2: most people know it's pretty dry out there at the moment.

12
00:00:27,280 --> 00:00:29,080
Speaker 2: Lake levels are lower than what they were at this

13
00:00:29,160 --> 00:00:33,479
Speaker 2: time last year. We still haven't got guests supply. That

14
00:00:33,560 --> 00:00:35,360
Speaker 2: means that it's going to be a tight winter and

15
00:00:35,760 --> 00:00:38,520
Speaker 2: that's why, as minister, you know, three weeks into the job,

16
00:00:38,560 --> 00:00:40,760
Speaker 2: I'm doing everything we can to make sure that we've

17
00:00:40,760 --> 00:00:43,760
Speaker 2: got secure and affordable energy. But it's pretty tough.

18
00:00:43,840 --> 00:00:46,400
Speaker 1: Is what you said yesterday to the gen tailor is

19
00:00:46,440 --> 00:00:49,080
Speaker 1: going to make one jot of difference if we can't

20
00:00:49,120 --> 00:00:50,920
Speaker 1: supply and meet demand.

21
00:00:50,960 --> 00:00:52,800
Speaker 2: Well, it is going to make a difference in the

22
00:00:52,840 --> 00:00:56,680
Speaker 2: medium term. The challenges is for this winter, and you

23
00:00:56,720 --> 00:00:59,840
Speaker 2: know that's what you know, a key element of focus

24
00:00:59,840 --> 00:01:02,240
Speaker 2: and other areas is. But what we're doing yesterday, it's

25
00:01:02,240 --> 00:01:04,360
Speaker 2: a strong signal to the market. We want to see

26
00:01:04,520 --> 00:01:06,920
Speaker 2: more competition. We want to make sure that you know,

27
00:01:06,959 --> 00:01:10,640
Speaker 2: they're playing on a level playing field, particky with independent retailers,

28
00:01:11,319 --> 00:01:15,760
Speaker 2: that they're not discriminating against other players. And you know

29
00:01:15,800 --> 00:01:18,800
Speaker 2: the regulator is going to be consulting on those changes

30
00:01:19,480 --> 00:01:21,959
Speaker 2: in the next eight weeks and bottom line, you know,

31
00:01:22,000 --> 00:01:23,960
Speaker 2: we need to be doing everything we can do to

32
00:01:24,200 --> 00:01:26,479
Speaker 2: keep the lights on this winter and for winters ahead.

33
00:01:26,640 --> 00:01:29,280
Speaker 1: Did you say what you said yesterday because you needed

34
00:01:29,319 --> 00:01:32,000
Speaker 1: to say it or just fill some headlines? In other words,

35
00:01:32,040 --> 00:01:34,480
Speaker 1: are they scolus and are now going to have to tidy?

36
00:01:34,520 --> 00:01:36,720
Speaker 1: They're act up all? Were they decent players anyway?

37
00:01:37,680 --> 00:01:41,520
Speaker 2: Now look like the circumstances are changed. You know, we

38
00:01:41,600 --> 00:01:43,840
Speaker 2: seem to, I think, talk about this. We seem to

39
00:01:43,880 --> 00:01:46,280
Speaker 2: have talked about this every winter. We need some action

40
00:01:46,520 --> 00:01:49,760
Speaker 2: and we need to see everyone playing their part. We

41
00:01:49,880 --> 00:01:53,920
Speaker 2: need more generation investment. Gin Taylor's play a key role

42
00:01:53,960 --> 00:01:56,680
Speaker 2: on that, but we also need a competitive market and

43
00:01:57,000 --> 00:02:00,080
Speaker 2: you know, I've had concerns alongside Minister Jones that we

44
00:02:00,120 --> 00:02:03,880
Speaker 2: don't have assessings right, and the regulator have come in

45
00:02:03,880 --> 00:02:07,080
Speaker 2: and said things need to change, and we're up for

46
00:02:07,080 --> 00:02:08,400
Speaker 2: that challenge and I think that's a good thing.

47
00:02:08,600 --> 00:02:11,520
Speaker 1: We had the Meridian bloke on yesterday who said, one

48
00:02:11,520 --> 00:02:15,000
Speaker 1: of several things he needs greater access to the contingent supply.

49
00:02:15,600 --> 00:02:17,639
Speaker 1: Now you're going to tell me that's not in your domain.

50
00:02:17,680 --> 00:02:19,639
Speaker 1: It really should be, shouldn't it. Why can't he get

51
00:02:19,639 --> 00:02:23,360
Speaker 1: access If we've got water and it's eight hundred dollars

52
00:02:23,400 --> 00:02:25,360
Speaker 1: at the spot price, why can't we get access to

53
00:02:25,360 --> 00:02:25,679
Speaker 1: the water?

54
00:02:26,400 --> 00:02:28,680
Speaker 2: Yeah, And look, I met with Meridian probably three dal

55
00:02:28,760 --> 00:02:31,480
Speaker 2: days into my role. The key issue is certainty around

56
00:02:31,480 --> 00:02:35,119
Speaker 2: that contingent supply, and the uncertainty is actually priced into

57
00:02:35,160 --> 00:02:38,040
Speaker 2: the market. I accept that the sector needs to know

58
00:02:38,639 --> 00:02:41,320
Speaker 2: when and how much of that contingent supply that it

59
00:02:41,360 --> 00:02:43,720
Speaker 2: can access, and I know that the regulator, and I've

60
00:02:43,760 --> 00:02:47,200
Speaker 2: asked the regulator to specifically look at this and get

61
00:02:47,240 --> 00:02:49,960
Speaker 2: back to me. It's not within my powers as a minister,

62
00:02:50,320 --> 00:02:52,560
Speaker 2: but I can tell you what in regards to the

63
00:02:52,600 --> 00:02:55,960
Speaker 2: government doing everything it can. You know we're leaving no

64
00:02:56,280 --> 00:02:59,360
Speaker 2: stone unturned and to secure energy this winter that's going

65
00:02:59,400 --> 00:03:02,320
Speaker 2: to include contingent hydro storage if needed.

66
00:03:02,560 --> 00:03:05,880
Speaker 1: When you say the regulator, is that the EA or Transpower.

67
00:03:05,400 --> 00:03:08,520
Speaker 2: It's actually a combination of both. But yes, Transpower and

68
00:03:08,560 --> 00:03:11,840
Speaker 2: the Electricity Authority play a role around that contingent storage.

69
00:03:12,000 --> 00:03:15,519
Speaker 1: What is it the EA do because in watching the

70
00:03:15,600 --> 00:03:18,760
Speaker 1: last winter at eight hundred dollars a pop, they seem

71
00:03:18,800 --> 00:03:19,920
Speaker 1: to be sitting on their hands.

72
00:03:20,760 --> 00:03:24,400
Speaker 2: Well, look, we've I've had a number of conversations pretty

73
00:03:24,400 --> 00:03:26,880
Speaker 2: straight up with all of the players in the market,

74
00:03:26,960 --> 00:03:31,200
Speaker 2: including our regulators, and saying status quo is not acceptable.

75
00:03:31,200 --> 00:03:34,000
Speaker 2: We need to see increased competition and you know, obviously

76
00:03:34,040 --> 00:03:37,080
Speaker 2: the regulator plays a key role in that. So we're

77
00:03:38,360 --> 00:03:41,040
Speaker 2: having a number of conversations at the moment to make

78
00:03:41,080 --> 00:03:43,520
Speaker 2: sure that everyone is a ligned up with what needs

79
00:03:43,560 --> 00:03:43,720
Speaker 2: to have.

80
00:03:43,800 --> 00:03:47,160
Speaker 1: But conversations don't turn the lights on. Are they pushing

81
00:03:47,200 --> 00:03:49,600
Speaker 1: back against you? And will you need to do something

82
00:03:49,600 --> 00:03:50,040
Speaker 1: about that?

83
00:03:51,120 --> 00:03:53,080
Speaker 2: Look, I think what you saw yesterday in terms of

84
00:03:53,080 --> 00:03:55,720
Speaker 2: the announcement so the regulator was a strong signal that

85
00:03:56,400 --> 00:03:59,000
Speaker 2: they have recognized clearly that we need to do more,

86
00:03:59,120 --> 00:04:01,440
Speaker 2: and we need to do more in the competition front.

87
00:04:01,800 --> 00:04:04,680
Speaker 2: That pressure is very high at the moment on everyone

88
00:04:05,320 --> 00:04:08,520
Speaker 2: and you know we're continuing to have those conversations. At

89
00:04:08,520 --> 00:04:10,000
Speaker 2: the end of the day, you're right, we need to

90
00:04:10,000 --> 00:04:13,160
Speaker 2: see action and we need to see some changes flowing

91
00:04:13,200 --> 00:04:15,160
Speaker 2: through and as minister that's my priority.

92
00:04:15,240 --> 00:04:16,599
Speaker 1: Well, good luck with it. We're going to be on

93
00:04:16,640 --> 00:04:19,600
Speaker 1: your case. Simon Wat's the Energy Ministry. For more from

94
00:04:19,640 --> 00:04:22,760
Speaker 1: the Mic Asking Breakfast, listen live to news talks that'd

95
00:04:22,760 --> 00:04:26,640
Speaker 1: be from six am weekdays, or follow the podcast on iHeartRadio.