Staff Reporter
02 October 2025, 3:39 AM
The Employers and Manufacturers Association (EMA) says the government’s reply to the long-awaited Frontier Economics electricity market report has fallen flat, with just two of ten recommendations taken up.
EMA Head of Advocacy Alan McDonald said many of the proposals, such as selling off government stakes in power companies or forcing distribution firms to merge, were never realistic.
But he argued rejecting regulatory reform and market consolidation leaves local businesses stuck with volatile power bills.
“Under the current settings, we’ve gone from attracting international business with low electricity costs to the closure of our own businesses as a result of higher domestic pricing,” McDonald said.
He pointed to some firms being hit with contract renewals up 30–50 percent.
The report followed last winter’s sharp electricity price spikes.
While the government has ruled out large-scale changes, industry is pressing ahead with its own measures: Huntly’s coal-fired units could run for another decade, new gas fields are being tapped, and fast-track consents are expected to bring more solar and wind generation online.
McDonald said options like deep-bore geothermal look promising, but the ban on gas exploration without a transition plan remains a problem.
“If you don’t look, you certainly won’t find any new gas,” he added.
For the Hibiscus Coast, where many small manufacturers and trades rely on stable supply, ongoing price shocks mean higher operating costs and tougher conditions for growth.
Locals waiting on promised savings from new renewables may have to brace for higher bills before relief arrives.
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