Is electricity a basic human right or a commodity to be paid for?
10 August 2007

Poll Outcome

Basic Right – 37%
Commodity – 63%

This is a question that really illustrates the divide between the different sides of the political spectrum. While most New Zealanders expect a high level of service from their electricity supplier at a relatively low cost, the result of the United Future poll shows that nearly two-thirds of people accept that electricity is a commodity rather than a basic human right. In saying that, while 100 years ago electricity could be considered a luxury in the household, we, in the developed world have become so reliant on it for heating, lighting and cooking it could be argued that electricity has become a basic human right.

There are those who advocate that there is no need and it is in fact duplicitous for power companies to make a profit. Power companies should exist to provide cost-price electricity for New Zealanders in an efficient and environmentally sound manner.

On the other side of the argument many believe that it is as a commodity that we as consumers gain the best service from our electricity retailers. Every consumer has the ability to shop around and choose the cheapest supplier to remind retailers that there is competition in the market. By exercising that choice, consumers see to it that power companies cannot crank-up prices whenever they wish and must deliver the best possible service, without faults.

United Future Position:

Security of supply and competitive pricing are United Future's key policy goals. The free market model is better than the centrally planned government controlled model of earlier years. We support the current regulatory structure but do not want to see any further regulation of the electricity industry. Line companies should have the ability to build new generation capacity. As long as New Zealand's high environmental standards are fully complied with, then we are of the view that the best generation is that which is the most reliable and can be consistently delivered at the lowest cost.