Via Radio New Zealand we hear positive noises about the supply of electicity this winter:
New Zealand’s third largest state power company believes the country will avoid a winter power shortage this year.
..The company (Mighty River Power) says a 130 megawatt geothermal plant being commissioned near Taupo will, on its own, exceed the North Island’s entire annual growth in power usage.
It also says storage levels and inflows to the South Island hydro lakes are favourable.
That’s great news. Basic economics says that when supply rises more than demand then prices will fall. That mean spot market electricity prices will fall – something that was talked about on the Morning Program.
That’s nice for enormous businesses that pay using spot prices, and it is great for the power companies whi will make more money as their costs fall.But it means no change for normal homes and businesses as electricity retailers like Mighty Power seem unable to drop their prices. Indeed the price you pay for electricity is fixed – aside from yearly changes that see them inexorably rise.
So what should you do? Well – there are two ways to take advantage of the economics of excess supply.
You could own a power company – and it so happens that we do actually own a few as taxpayers. Those returns may help us ultimately, but is there is a way to reduce costs for yourself and your business.
There is – and of course, it is by switching to Powershop – where prices reflect the reality of the market, and not the whim of the marketers.
Powershop is already much cheaper than alternatives, has a new business marketplace for big spenders, and this winter it looks like the prices will remain sharp.
Powershop is also a lot easier – everything just works, I’ve yet to see any paper and you can, if you like, shop around for specials or buy in bulk to save even more. You can also buy our very own FlowerPower, plant trees with TreePower and feel good when you carbon neutralise using Green Power.