United Future believes that in general the free market model provides the best solution to New Zealand's long-term energy requirements.

Electricity

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. In the interests of security of supply, we support the maintenance of reserve electricity generation capacity, such as the plant at Whirinaki. We do not believe one type of electricity generation should be favoured in law over any other. 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.

United Future will:

• amend the Conservation Act to ensure that proposals for the development of hydro schemes within the conservation estate are allowed to go to a full resource management hearing;
• support upgrading the national grid in areas where such an upgrade provides the best solution for ensuring security of supply;
• convert Transpower NZ Ltd to a public utility with the sole objective of transporting power through the National Grid at the lowest possible long-term cost to the consumer;
• make it easier and cheaper for micro-generators to connect directly to local electricity networks (including a requirement for lines companies and electricity retailers to trade with micro-generators at 'fair' market rates).

Oil and Gas

United Future believes every effort should be made to encourage rapid exploration and economic exploitation of New Zealand's potential oil and gas reserves (within current environmental standards).

United Future will:

• oppose levying the oil industry to build additional oil storage capacity - this is a strategic government policy and as such should be paid for by the government (is really a "defence of the realm" issue);
• oppose a standard royalty rate on new offshore oil discoveries being fixed in advance. We believe that the general policy should be a zero royalty rate with the government reserving the right to apply a royalty, on a case-by-case basis, which is specific as to rate etc to any medium to large oil field discovered;
• explore with the industry ways of encouraging greater uptake of reticulated natural gas in the North Island and LPG in the South Island.

Kyoto Protocol

United Future opposed New Zealand's participation in the Kyoto Protocol on the grounds that not only is it based on debatable science, it will make many of our current electricity sources such as coal and gas (and maybe even hydro) uneconomical, and it will hurt our economy for little or no objective environmental gain.

United Future will:

• oppose the introduction of a carbon tax;
• ensure that New Zealand meets its obligations under the first commitment phase of the Kyoto Protocol, but only using "no regrets" initiatives - e.g. by planting new forests, implementing energy efficiency measures, and developing carbon mitigation techniques;
• require New Zealand's withdrawal from the Kyoto Protocol after the first commitment period ends in 2012 unless all our major trading partners including Australia have joined by that time.

Energy Efficiency

United Future strongly supports energy efficiency initiatives because they have the potential to reduce pollution, increase security of energy supply by slowing the rate of increase in demand (for both electricity and fossil fuels), lift New Zealand's economic productivity, and provide a "no regrets" way for New Zealand to meet its obligations during the now unavoidable 'first commitment' period of the Kyoto Protocol.

United Future will:

• make the Energy Efficiency and Conservation Authority (EECA) the central funding agency for contestable funding programmes aimed at reducing long term energy consumption in small and medium enterprises (SMEs);
• substantially boost funding to EECA for a comprehensive nationwide programme of retrofitting existing homes with energy saving improvements (including hot water cylinder wraps, low-flow shower heads, energy efficient light bulbs, and incentives for installing solar hot water heating);
• adopt a national strategy, including private sector funding, to insulate all NZ homes to at least 1977 standards;
• substantially boost investment in research and development for alternative energy systems and technologies;
• require all Government entities to take the lead in creative energy reduction;
• support all dwellings being assessed for energy efficiency and given a standardised energy efficiency rating. We will encourage local authorities to introduce bylaws to this effect;
• permit local authorities to incinerate rubbish using clean, high temperature combustion technology in order to reduce the need for new landfills (may also be used to generate small amounts of electricity and to recover certain metals etc);
• encourage the direct use of natural gas, including LPG, for home heating, cooking, and in the case of LPG, transportation.

Alternative Energy

United Future will:

• create a "Future Energy Forum" that will be tasked with developing a long-term strategy for prioritising New Zealand's energy related research and development, and supporting the uptake of new energy related technologies by individual consumers, industry and electricity generation companies. This work will also take into account alternative fuel issues emerging from any increases in oil prices;
• fully investigate the future viability of hydrogen as a major energy source, and boost funding for research into hydrogen related technologies such as, coal gasification techniques.

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