Power shares

[Blue Skies]

Just add to that re the transmission lines, have read commentary getting the necessary resource consents granted, across National Parks, Maori land, privately owned land, etc if not next to impossible, could take till the next century.
If this could be circumvented, I don't know, but also a possible major hurdle.

[Beagle]

Was involved as a trustee in one of my clients properties in the Waikato many years back when Transpower upgraded transmission lines to Auckland.
He really got stuck into them for compensation to erect their giant pylons on his farm. Can't say any more for client confidentiality reasons other than, yes, it would cost mega bucks to put in the infrastructure, if indeed it could ever be done. MEL in particular look vulnerable to me.

[fungus pudding]

Just add to that re the transmission lines, have read commentary getting the necessary resource consents granted, across National Parks, Maori land, privately owned land, etc if not next to impossible, could take till the next century.
If this could be circumvented, I don't know, but also a possible major hurdle.

Obviously it's more profitable to sell it locally at a discount. That should attract industry if Tiwai won't meet a reasonable price. IOW don't send it north - bring a couple of big customers south.

[horus1]

I ran this a major part of this Industry for 15 years and was a senior manager for 30-40 years. Believe me we would be better off if Tiwai closes. The Transmission will get upgraded, and people will get new jobs. When you pay 5,5C/Kwhr and I pay 15 - 20 c/Kwhr this is a cross subsidy to Tiwai.

[Beagle]

I ran this a major part of this Industry for 15 years and was a senior manager for 30-40 years. Believe me we would be better off if Tiwai closes. The Transmission will get upgraded, and people will get new jobs. When you pay 5,5C/Kwhr and I pay 15 - 20 c/Kwhr this is a cross subsidy to Tiwai.

As I understand it your 15-20 cents per kw/hr includes the lines charge (AKA transmission costs) whereas Tiwai's 5.5 cents per kw/hr doesn't and they are a relatively short distance from the dam whereas you're probably not ?
Also isn't their demand load reasonably constant whereas yours like mine will have significant peak's and trough's ?
Comparing apples and oranges ?

[blackcap]

As I understand it your 15-20 cents per kw/hr includes the lines charge (AKA transmission costs) whereas Tiwai's 5.5 cents per kw/hr doesn't and they are a relatively short distance from the dam whereas you're probably not ?
Also isn't their demand load reasonably constant whereas yours like mine will have significant peak's and trough's ?
Comparing apples and oranges ?

I think you might be right. With Flick a while back I was paying 6c Kwhr and the lines charges component was 10c Kwhr. You are right in saying that the bulk the NZ consumer pays is in the line charges. Tiwai is very close to Manapouri (in relative terms) so that is why they get the 5.5 cents. But 5.5 cents is pretty much what the wholesale market (up to a year ago before Labour buggered it) paid for their electricity.

[Bart]

I think you might be right. With Flick a while back I was paying 6c Kwhr and the lines charges component was 10c Kwhr. You are right in saying that the bulk the NZ consumer pays is in the line charges. Tiwai is very close to Manapouri (in relative terms) so that is why they get the 5.5 cents. But 5.5 cents is pretty much what the wholesale market (up to a year ago before Labour buggered it) paid for their electricity.

FYI, currently I pay with Flick 14c/kWh for the lines component (just changed to smart plan which charges 22c/kWh during peak hours and 6c/kWh off-peak), and over the past year i pay on average 14c Kwhr for the power. That market driven spot price jumped from about 7c/kWh over the preceding 4 years, so Tiwai is getting a good deal. The good news is that Flick pays the same spot price for my excess solar power.

[horus1]

Tiwai gets much of its energy from the North it doesnt just come from Manapouri. You cannot justify 5.5 vs 15 c/Kwhr and the other factor is that Tiwai has the highest reliability in the country , gauranteed. I have outages so their transmission charges should be high.

[Balance]

https://www.stuff.co.nz/national/the...-smelter-bluff

"Tiwai is close to power generation, and the fact that it's hydro power makes it the cleanest operating smelter in the world. It is one of only two smelters in the world producing ultra-high purity aluminium."

Guess we will find out in March what will happen.

Until then, my bets are that the grubby one & the Labour Coalition will bend backwards and let the power consumers of NZ take one for the Southland economy.

Election year next year, see?

[horus1]

Sorry, article is wrong and I was in charge in most of the SI for electricity in the 90's etc. The NZ electricity Industry is only 65 % non CO2 , the renewable bit isnot so important. Shows how good the PR people are doesn't it. That is fact.