Monday, July 28, 2008

$3 billion bill comes in for Liarbour's energy failure


As the power savings campaigns end, the bill paid by business, and ultimately us all, has come in for Liarbour's energy failure- a whopping $3 billion.
The extra costs come in lost production and higher spot charges.
As one businessman notes, the market works, but surely not by closing industry down!
The NZ Herald notes power shortages have happened for decades but they do seem to be occurring with growing regularity.
A failure of the government, who owns much of the energy sector anyway, to allow sufficient extra generation.
As this blog has noted before, Liarbour has rorted the energy user in higher charges and low investment.
The planning system, a ten year moratorium on coal powered stations won't help either, though extra capacity is said to be on its way, but not in time for next year.
But it's not all bad. With that extra revenue going to the state owned energy enterprises, the Treasury will get a handy windfall, so maybe Working for Other People's Families AND large taxcuts will be affordable after all!

1 comment:

Anonymous said...

Another case of Liarbore mismanagement.
$3 billion works our at $750 per New Zealander.
Well done Old Hell!

pdq