The growing view that New Zealand’s energy market is “broken” has brought with it a stream of suggestions for piecemeal changes that nibble at the edges of the problem, without tackling the real structural, legal and distributional issues.

Nor do those suggestions demonstrate how such changes would fit into a coherent overall scheme for the future industry, or truly bring down soaring prices that are crippling households and businesses.

NZ First’s Shane Jones seems to agree, and recently called for his party to consider a policy of renationalising the big “gentailers” (the combined generation and retail companies). But his solutions appear designed to lock in dependence on fossil fuels rather than hasten the 100% renewable energy future that now beckons.

From the outset, it’s important to set clear goals for the electricity industry. Mine are: reliable abundant supply, and the lowest possible price to end-users, especially households.

Those were the goals of the old New Zealand Electricity Department, and they had been largely achieved by 1986. So-called reforms since then have reduced reliability while massively increasing prices and profits for the benefit of asset owners (including the government).

So, it’s also important to remember there are now entrenched vested interests whose incomes and asset portfolios are dependent on high prices and monopoly profits.

Bringing prices and profits down will mean writing down the asset values of........

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