The Green Party welcomes OECD's call for reform.
The Organisation for Economic Co-operation and Development (OECD) has urged the New Zealand Government to re-examine its electricity market, specifically separating 'gentailers' to create a fairer system. According to Green Party Energy Spokesperson Scott Willis, the current market is "in desperate need of reinvention" due to its prioritization of shareholder profits over renewable energy investment.
The OECD has identified issues with the market's foundations, which have locked gentailers into using fossil fuels while preventing new entrants and renewables from participating. This has resulted in high power prices for households and businesses, as well as supply issues and business closures. Willis believes that separating the gentailers is a necessary step towards creating a cleaner, smarter grid with cheaper electricity.
Willis's Member's Bill, which aims to separate generation and retail businesses, offers a pathway forward. The Green Party is calling on the Government to take action and use his bill as a starting point for reform.