The regulator will not let them get a return on revaluated assets only on original costs . That is why in economic terms it is a rip off. In the finish they will get regulated as it is an essential industry
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The regulator will not let them get a return on revaluated assets only on original costs . That is why in economic terms it is a rip off. In the finish they will get regulated as it is an essential industry
Regulation should only occur for monopolies.
Sure there should be some tweeking of the market model to ensure there is better competition, and to ensure generators cant be anti-competitive in certain situations (ie. price spikes caused by an exceptional event) but there is competition. If you think the price of generation is too high, go build a power plant and hook it up to the grid.
Okay your political agenda is clear for all to see. I still strongly disagree. Plenty of generation capacity development currently on hold because they can't get an adequate return on new investment and the market from a generation point of view is already well supplied. What's the axe you want to grind, winter power bills hurting ?
I'm not political. I know a lot about the electricity industry,believe me if the regulator doesn't get them the technology will .
August monthly report is out and looks promising: National water reserves below average (94%), while Meridians reserves increased to well above average (136%) despite increased power consumption this August (4.2% higher than last year). Higher reserves and higher consumption ... do I feel another good year coming?
https://www.nzx.com/files/attachments/200561.pdf
Discl: hold; DYOR - my crystal ball is cloudy, as always ... and the election can spoil it all:ohmy:
The regulators will target the lines companies first.(monopoly)
Probably the ones that are 100% privately owned, the ones that are using loans at favourable interest rates to companies based in the cayman islands, so that can barely making a profit (in NZ) because they can only just cover the interest payments, so hardly pay any tax.
As the interest payments are going into a subsidiary of the parent company, but the subsidiary is cayman island based, no tax paid.
They are the ones who the regulator will go after first.
No government Red,Blue or Green will target the state owned gentailers profits as they are getting 51% of the DIVI.