National unveils nine-point energy plan to tackle power bills

The National Party has released a nine-point energy plan it says will tackle the costs pushing up power bills.

Dubbed Electrify NZ 2.0, National says the plan will deliver more supply, more competition and more choice for households and businesses.

Some of the policies are things the party has already announced, such as its Home Energy Fund to provide loans for household solar, cutting red tape through the Resource Management Act (RMA) and a requirement for new AI data centres to provide their own firmed power.

National energy spokesperson Simeon Brown said New Zealand is experiencing a renewables boom, which has helped lower the price power companies pay for electricity.

"But the price of electricity itself is only one part of a power bill. Lines charges, red tape, weak competition, and the cost of keeping the lights on in a dry year all add to what Kiwis pay. Our nine-point plan takes on each of them."

On the list is a proposal to look at network charges.

National's policy document said when the Commerce Commission last set a cap in November 2024, interest rates were high, and the cap was locked in until 2030. It means that high cap will remain until 2030, even though interest rates have fallen.

With lines charges now accounting for around two-thirds of the rise in the average power bill, National said it would review the part of the Commerce Act which determines how much revenue lines companies can recover.

"It was designed for a stable, one-directional system, not one in which households generate, store and export their own power," the document said.

The policy package would also let households and businesses sell the power they generate from solar or batteries to any retailer or buyer they choose, not just the company they buy from.

Affordability would also be made a core objective for the Electricity Authority, written into law.

In total, the plan consists of:

• unlocking new energy development zones by letting developers, major users and investors build transmission and recover costs from those who use them
• making connections faster and cheaper by allowing Kiwis to choose an accredited contractor, not just the one their network hands them
• letting Kiwis sell power to the best buyer, so households and businesses with solar or a battery can sell to any power company, not just the one they buy from
• addressing the dry year problem by levelling the playing field for backup power by opening the backup market
• tackling lines charges by reviewing the rules that set them to make necessary changes, and require residential and small business solar connections to be approved within two working days
• making affordability a core objective for the Electricity Authority by writing it into law
• cutting more red tape holding back renewables so wind, solar and hydro can be built faster
• launching the Home Energy Fund, giving Kiwis low-interest, long-term loans to invest in their own power and cut their own bills, and enable plug-in solar
• requiring AI data centres to bring their own new, firmed power, so new digital investment adds to the grid and creates jobs instead of pushing up prices.

Brown said all of the measures would make a difference to power prices, but some would take longer. He said the goal was a more competitive market.

"If you're going to have more solar, more batteries, there's an opportunity for other companies to come in and make different offerings, and actually we think that's a good thing, to have a more competitive market."

There are some major similarities with ACT's electricity policy announced in September, including allowing private investors to build transmission and allowing households to choose who they sell the power they generate back to.

Labour said National's policy was an "absolute fizzer", and the party had had three years to bring power bills down.

"This is not a plan to bring power bills down. It's an admission National hasn't got a clue how to do it," said Labour energy spokesperson Megan Woods.

"Families are cutting back, people are rationing power, and pensioners are struggling to keep warm. Meanwhile, National is offering more reviews and working groups instead of relief."