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John MacDonald: Is it the Govt’s job to make energy prices cheaper?

Author
John MacDonald ,
Publish Date
Fri, 26 Sept 2025, 12:57pm
Photo / File
Photo / File

John MacDonald: Is it the Govt’s job to make energy prices cheaper?

Author
John MacDonald ,
Publish Date
Fri, 26 Sept 2025, 12:57pm

I got an email from the power company this week, telling me about my weekly electricity use and how much of that is used during my eight hours of free power on Saturdays and Sundays. 

Despite doing all the washing and drying during the 16 free hours of power each week, it was only 20%. 

No wonder the bills are so expensive. And that鈥檚 without teenagers chewing through the power like it used to be not that long ago. 

So we probably shouldn鈥檛 be surprised by a new survey which says over 60% of people would be in favour of the Government underwriting the cost of new electricity generation, if it meant cheaper power bills. 

This is a survey that was done by Curia for Octopus Energy and the Auckland Business Chamber. The results have been released as we are, apparently, just days away from some sort of significant government announcement about the energy sector. 

But here鈥檚 the question: Is it the Government鈥檚 job to make energy prices cheaper? 

I think we lost any right to expect the Government to deliver cheaper power prices when the market was reformed by Max Bradford all those years ago. When we got the set-up we鈥檝e got now, which we were promised would mean cheaper power prices. 

Because unless the Government buys back all the shares in all the power companies, then I don鈥檛 think it is the Government鈥檚 job to make energy prices cheaper. 

What鈥檚 more, the idea of the Government underwriting new generation projects is a bit of a slippery slope. Because why should these companies get the Government being a backstop for them if things go pear-shaped? What about other sectors that have to go it alone without the taxpayer to fall back on? 

Energy Minister Simon Watts isn鈥檛 saying much, but he鈥檚 describing it as something that will be 鈥渟ignificant but surgical鈥. 

My view is that the only way the Government could deliver cheaper electricity prices is by buying back all the shares in the big power companies. Resurrecting the old NZ Electricity Department (NZED). 

But that鈥檚 never going to happen. Shane Jones has talked about it, but I think it鈥檚 very unlikely. 

And that鈥檚 why I think we need to forget about this idea of the Government coming to our rescue. 

We don鈥檛 expect the Government to make air fares cheaper. We鈥檝e abandoned the idea of the Government making groceries cheaper. 

So why should we expect it to make power prices cheaper? 

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