Shane Jones threatens to close Electricity Authority if it doesn’t ‘act like a man’

Deputy Energy Minister Shane Jones is threatening to close down the Electricity Agency if it does not act like a man and show its authority.

He met with officials on Wednesday morning after forestry company Winstone Pulp International announced it planned to close its Tangiwai sawmill and Karioi pulp mill, resulting in the loss of 230 jobs.

“I said that this was not the time to approach pedestrians and that I really wanted them to take courage and use their power, otherwise they would end up as run-over animals on the road.

“There is no point in keeping the Electricity Authority, which is a key regulator, if it is not willing to demonstrate its strength or use the full powers provided for in the legislation,” Jones said.

He mocked energy companies for skyrocketing prices.

“We have an energy sector where the rules and regulations reward those who exploit the shortage. Retailers have not invested in providing energy security for New Zealanders through additional capacity,” he said.

Authorities declined RNZ’s request for an interview, saying they would provide a statement but failed to meet the deadline.

“It’s an everyday problem”

Joe Gallagher, a negotiating specialist at Etu Union, fears that many manufacturers are on the verge of a huge rise to power and complete collapse.

“It’s an everyday problem and we’ve seen this growing trend that’s reaching a tipping point and it’s all over in the blink of an eye. It’s a really worrying trend that seems to have really accelerated in the last six months,” he said.

He was particularly concerned about Kaitaia’s forestry company, Juken New Zealand Limited, JNL.

“They’re facing the same question around power and gas prices, they’re a big employer in Kaitaia and it highlights the importance of these mills to these communities, so everyone kind of… it’s a day-to-day perspective with these spot prices and the way they fluctuate so wildly.”

Kaitaia councillor Penetaui Kleskovic told RNZ the closure of JNL would be a disaster as the company is the city’s largest employer.

“There will be a disaster in Kaitaia, many families in Kaitaia are heavily dependent on JNL,” he said.

Kleskovic wants the government to invest more in the energy supply of the High North.

“We need an investment of $100 million and in the next 20 to 25 years we will be able to generate electricity worth six billion dollars,” he said.

Meridian, Contact responds

Meridian chief executive Neal Barclay said the energy company was focused on maintaining the security of its energy supply during the harsh winter and was making significant investments to boost New Zealand’s renewable energy production over the coming decades.

“Although they are few in number, this is a particularly difficult period for those companies and their employees who are exposed to high wholesale prices. We want to avoid a situation where large customers find themselves in a similar situation, which is why we are supporting our business customers during this difficult time,” he said.

Contact Energy said it was aware of the challenges the electricity market faced this winter.

“They are a direct result of the gas shortage and the dry hydrological year. The energy system is in transition. In New Zealand, the reality is that we need 40 more power stations by 2035,” they said.

“Our profits go back into building the renewable energy infrastructure the country needs.”