Waiters of Hanmer Springs, awake! Aaron Gilmore is back.
Only two posts so far – the first a swift introduction, which goes like this:
After a couple of weeks of relaxing and reflection following a slew of media smearing, I have launched this blog which I will in time be linked to my business website and facebook accounts. Over the next few weeks will be writing my thoughts and analysis on a number of things, current affairs, investments ideas and analysis, some economics and free corporate finance too.
The second is a giddy stream-0f-consciousness reflection on the Labour-Greens proposal to reform the electricity sector.
Here it is, again in full, you lucky things:
Having had a small bit of experience in the energy sector it struck me that given the Greens recent announcement over their plans for the NZ energy sector and some commentary today about it by a number of organisations and individuals should they get to be in Government in the future could it work? I have to say anything of course can work, for a period of time, but with huge costs and risks of implementation and ongoing risk of underinvestment in the industry the Greens policy is far from the best example of policy design they have come up with. As with any policy potential change has winners and losers. This policy would also create massive shifts in wealth the question is, would it be all worth it? Is a few dollars saving a month, because that is all they are talking about on your home electricity bill worth the risk of brownouts? Worth the massive writedown in the values of many energy company assets that would occur as future prices are fixed not at the Long Run Marginal Cost but at either short run marginal cost or at best average cost. I say possibly for the average Green voter yes, but highly unlikely for New Zealand as a whole. More on this in the next few days and if it was implemented who would be the winners and losers.
Holy confusedballs, Batman. It has to be him, doesn’t it? The prose style is familiar. And “Mighty Rocket” is the name of his consultancy, after all.
I left a query in the comments – do you, erm, know who he is?