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    The proposed privatisation of Electricorp

    Morgan, K. J.
    Abstract
    The proposed privatisation of New Zealand's electricity generation system, with particular reference to the sale of Manapouri. The debate surrounding the proposed sale of Manapouri to Comalco can be used as a focus for the whole privatisation issue. Damming Lake Manapouri was the first large environmental issue in New Zealand's history, and as such, its importance to New Zealand is recognised. Also, though less well known, are the issues surrounding Comalco's use of the power generated by Manapouri, a history of little environmental and social concern, and electricity price subsidies. The question of selling New Zealand's best hydroelectric power station to a foreign owned company, whose first, and questionably only, concern is to make a profit, epitomises the issues surrounding privatisation. The central question regarding the privatisation of Electricorp is that of who or what should New Zealand's natural resources be managed for. The answer should be, of course, the benefit of New Zealand and New Zealanders as a whole. However, what constitutes the benefit of New Zealand, the best use of these resources, and how they should be achieved seems to be under dispute. In order to achieve the most efficient use of these resources, the present Government is planning privatisation. They are acting on advice from the Treasury department, which has adopted the ideology of the New Right, a school of thought which focuses on the importance of individual property rights, and the inherent rightness of the free market. However, in doing so, energy efficiency and economic efficiency have become synonymous, by assuming that economic efficiency leads to energy efficiency through the action of competition in the market. This is not accepted by many people, especially as the electricity generation industry can never give a perfect competition situation. However, the Government, acting true to the New Right ideals, is selecting its evidence, ignoring that which does not favour privatisation. New Zealand is in a good position with regard to its energy resources. We have large ample supplies of renewable energy, and the second cheapest electricity in the OECD. This needs to be used to our best advantage. What is needed is a change in the Government's guiding philosophy back to a concern for the country, not just for certain individuals. This includes a recognition of the need for future planning of energy management.... [Show full abstract]
    Keywords
    energy; electricity; energy policy; energy development
    Fields of Research
    050209 Natural Resource Management; 050204 Environmental Impact Assessment; 090607 Power and Energy Systems Engineering (excl. Renewable Power)
    Date
    1991
    Type
    Thesis
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