Electricity
Electricity is a significant input for farm production as well as being important for the wellbeing of farming families. The farming community has a vital interest in ensuring reliable supplies of energy and other utility services at prices that protect their competitiveness.
Electricity Market
Between 2000 and 2008 farmers' electricity prices increased by 85 percent. Electricity market reviews in 2009 resulted in changes legislated in 2010 to promote competition, reliable supply and efficient electricity market operation. Federated Farmers expects these reforms to reduce electricity price inflation. While it is still early days for the new market, we will be monitoring prices closely.
Transmission Upgrades
In response to a push for more renewable energy and the fact that most of the country's electricity is not generated close to areas with growing electricity demand, over the coming years Transpower will be investing heavily in upgrading its existing transmission lines and to install new ones. Transpower's plans have an effect on the property rights of landowners.
Federated Farmers has been at the forefront of discussions with Transpower seeking better easement conditions for landowners and more appropriate compensation arrangements.
Federated Farmers has also been advocating for the payment of compensation in the form of annual rentals as a fairer way for farmers to have a stake in the economic returns from electricity transmission and to recognise the continuing impact of transmission lines on farming operations.
- The new electricity market to be efficient and to deliver electricity prices that enhance farmers competitiveness
- Government to support, under legislation, the option of compensation for powerlines over farms to be paid as a reviewable annual rental.
Spokesperson
Federated Farmers Electricity Spokesperson is board member Willy Leferink, you can conact him at wleferink@fedfarm.org.nz.
