July 2006
Commissioner's preface
The global challenge of climate change casts a shadow across this second assessment of the Electricity Commission. Described by UK Prime Minister Tony Blair as "a challenge so far-reaching in its impact and irreversible in its destructive power, that it radically alters human existence", climate change dominates how we must view the provision of energy and its impact on our environment.
New Zealand's electricity sector must evolve so that
it raises the efficiency of supply, distribution, and use
the resilience of the entire system is improved so that it can withstand whatever the future may bring
electricity generation is decarbonised as quickly as possible.
In today's energy debates in New Zealand, the supply and distribution of more electricity receives too much prominence. Major electricity users and the generators who retail most of the electricity tend to dominate current thinking about what the country needs.
All aspects of supply and use need to be democratised. We are currently researching this position and, in an upcoming report, we will examine the potential for greatly expanding small-scale distributed generation and energy capture.
I have made six recommendations to the Commission. Generally, it is asking many of the right questions and investing money and effort in the right areas. But it has powers within only parts of the electricity sector.
I have also made seven recommendations to government ministers and agencies.
Report summary
Every year, the PCE must assess how well the Electricity Commission is meeting the Government's environmental goals. The PCE also looks at the wider electricity sector. This report, the first full-year assessment, covers the Commission's activities to 30 June 2005.
Included in the report's 13 recommendations are six to the Commission about
developing an environmental sustainability framework
using smart meters to encourage energy efficiency
widening representation on the Commission's advisory groups
improving the information to advisory groups and stakeholders
promoting distributed generation
reducing energy losses from transmission and distribution.
The seven recommendations to the wider electricity sector cover
developing an overarching energy strategy
clarifying the responsibilities of different government agencies
strengthening the environmental goals in energy policy
improving energy data
reaching energy targets
providing environmental performance indicators for the electricity sector
improving environmental reporting by the big electricity companies.
(See also: Media release, 24 July 2006.)
