10 Sep 2025

Labour accuses National of 'blame game' over energy prices

11:52 am on 10 September 2025
Labour's Carmel Sepuloni and National's Simeon Brown

Photo: RNZ

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Labour is accusing National of playing the "blame game" when it comes to energy prices, while neither party backs an idea from NZ First to re-nationalise gentailers.

National's Simeon Brown and Labour's Carmel Sepuloni joined Morning Report for the weekly political panel on Wednesday, as surging power bills have New Zealanders struggling.

Brown said there'd been an increase in prices partly because of high inflation caused by the previous government.

He explained lines charges go through a process where the Commerce Commission sets the rate, the cost of capital and the returns based on historical inflation. That process drives those costs "quite considerably" Brown said, leading to a "significant increase in what's been charged".

He said the government had gotten rid of "some of the uncertainty the last government had around its 100 percent renewable targets" and the Lake Onslow scheme. That had been causing investors to "step back" because the government was interfering in the market.

Sepuloni responded saying: "Simeon just came straight out the gate, playing the blame game again."

What he should have done was acknowledge people were struggling with the cost of their electricity bills, she said.

"It means that for some of them, they're not turning on their heat pump because they're scared of how much that bill is going to cost at the end of the month."

Sepuloni said Labour was concerned this government had switched focus from renewable energy to coal and gas. She also wanted assurances the Winter Energy payment wouldn't be cancelled or tampered with.

Brown confirmed the government was "100 percent committed" to the Winter Energy payment, but said what was needed was a "market based response" which invested in the lowest cost energy solutions, "whether that is renewable or whether that's coal and gas".

Meanwhile, New Zealand First minister Shane Jones wants his party to consider a policy of renationalising the gentailers - the big electricity companies in New Zealand that both generate and retail power.

He has written to his leader, Winston Peters, about options for delivering internationally competitive energy prices. The ideas have also been shared with the other coalition parties.

Brown wouldn't say if National agreed with it, instead saying Minister for Energy Simon Watts was bringing proposals to Cabinet about how to make the market more competitive.

Sepuloni wouldn't back it either, saying: "It's certainly not on our agenda as something that we're actively discussing as a political party."

She said she wasn't surprised NZ First was "at odds" with National on a "significant policy matter".

The blame game continued as Sepuloni highlighted businesses citing energy costs as reasons for shutting down, to which Brown shot back: "The reason why many businesses are challenged is because the last government banned oil and gas exploration, which has collapsed, that part of our energy sector."

"It's simply not true Simeon, it's simply not true," Sepuloni responded.

Tāmaki Makaurau by-election

Labour's deputy leader and the National Minister also exchanged barbs over Peeni Henare's loss in the Māori seat over the weekend.

Brown called it a "body-blow" to Labour. "Everyone expected Labour to win this byelection.

"They had all of their front bench members up there campaigning, except for Chris Hipkins, who was MIA on election night when the results started coming in."

Sepuloni said it was disappointing, and she was disappointed too in the voter turnout.

"That's something that we need to turn our minds to in the leadup to the next election."

Sepuloni said Labour and Te Pāti Māori have ongoing conversations because there were lots of policy areas they agreed on, "lots that the government are doing, that we are in solidarity against."

Those conversations will continue in terms of any future arrangement, she said, if Labour was successful at getting elected into government.

There was lots to reflect on she said, but it wasn't a general election.

"It wasn't going to result in a change of government, because when we're out and about, that is the number one thing that people talk to us - about the need to change the government."

Brown said the main issue was Labour didn't set out any new policy during the campaign, "no wonder you lost."

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