Electricity Industry Reform: Neo-communism?

In New Zealand the two largest opposition parties have announced a plan to return the electricity industry back to a centralised planned model. The idea is to have one monopoly buyer  who effectively sets the price for wholesale electricity.

We had decades of centralised planning for the electricity industry and that resulted in much oversupply. Deregulating the industry, creating the spot market, introducing competition (albeit oligopolistic) have constrained energy prices.

This may seem contrary to experience but the world has seen a period of sustained energy price inflation in recent years. Yet we have seen higher electricity price rises than that experienced elsewhere. NZ has its own particular circumstances that should be taken into consideration.  For example, the exhaustion of the Maui Gas field has meant that Gas-fired generation is now fed by more expensive fields. 

I believe Electricity prices would have been higher still without market constraints.  Instead of large chunky investments in new generation, smaller increments have been installed, better matching demand growth.  NZ Windfarms, an independent power generation capacity investor based in New Zealand, bet that electricity prices would rise to levels that would sustain them. This proved false. Not surprisingly capital investment in generation has slowed.

The 20th Century (should have) taught us that centralised planned economies are poor at allocating resources. Counter-intuitively the seeming chaos of free markets has proven to be more efficient.  The painful experience of the Soviet Union, China, the Eastern Bloc and indeed modern day North Korea stand as prominent warnings for us all. Humanity lost up to 100 million lives teaching us this lesson by famine, some other form of deprivation or in the Gulags. Most Left wing thinkers I have met tend to be highly intelligent and hold above average levels of education. Can this lead to over confidence in our abilities to manage an economy? 

The biblical role of government is to regulate commerce from corruption and in this context, prevent monopolies from abusing their positions. Consequently if a part of the electricity needs immediate scrutiny from Government it should be the elements that are naturally monopolistic in nature, the electricity network companies.

For further reading:

World bank. 
Lantau Group.

School for Christians

Since we started looking for a suitable school for my eldest son (who is now just about to turn 6), it has struck me that in Western society, if we think something is important then we educate for it.

If you want to drive a car, then there is a "road code" that has to be studied, each chapter has its learning objectives and eventually an examination has to be passed before a learner's licence can be obtained. Even then a practical examination is also required to prove one's competency behind the steering wheel.

The principal tools of education seem to me to be:

1. Curriculum
2. Age-appropriate learning objectives
3. Assessment
4. Recognition

Most Christians would believe that the Bible is really important to living our lives under God. Yet few of these four tools are commonly used in a systematic way unless one goes to Seminary. But how many go to Seminary and why should one be typically over 18 before the benefits of education can be applied to Christian learning by a Christian?

In my experience people learn differently when they know that there is going to be a test to sit after a unit of work. Just passively listening to sermons each week doesn't cut it because:

1. Many ministers and pastors don't set out to evenly cover what the Bible has to say, instead preferring to move from topic to topic "as the spirit leads." Unfortunately this can end up leaving the congregation very familiar with that particular leader's soapboxes but their understanding of other issues are neglected.
2. The congregation learns to be an audience rather than taking responsibility for building and maintaining its understanding of the scriptures. Instead of maturing the congregation to carry out the works of the ministry they become dependent on leadership.
3. When the list of soap boxes run out they can fall into the trap that there is little else to learn and they cannot see how there can be a lifetime of inquiry and engagement with God through the Scriptures. Starved of any brain food, they apply their energy into other interests, their careers, hobbies or families.
4. Without a good understanding of the scriptures, the congregation do not know what solutions there are to life's issues and challenges that can be found there. Yet those issue's and challenges must be met, so the scriptures do not seem relevant to a modern society. Christians must then resort to secular common-sense. Non-Christians aware that this is so, do not refer to Christians since they cannot bring a unique perspective to problem solving. The church is therefore perceived as irrelevant.
5. Being brought up to be an audience means that few Christians realize that there is a work ethic that comes with Christian living. Instead a consumer culture can prevail in the Church. In Marketing 101, the needs of the market are paramount. Without moderation such a philosophy can only lead to selfishness.

I propose that Churches should run night schools for its congregation with multiple age-appropriate units of work that can be established for self study or through attendance in classes. A suite of examinations can be written that can mark the end of each module and if they aren't passed then a student can sit another examination until it is. This is the Keller Plan system.

The benefits of such a night school are manifold:

1. By running them at night, church members can attend without being distracted by work.
2. A night school can become a wonderful place for discussion and debate that can fuel interest in the Scriptures as a handbook for modern living.
3. It creates an environment for developing new talent for teaching the scriptures. If a church is almost exclusively limiting its venues for teaching to the pulpit, few individuals can find opportunity to develop their giftings.
4. If a certificate or other age-appropriate qualification was an object of study then students can be further motivated by having something to focus on and work toward.
5. Over time, church members will build their confidence to study, research, discuss and debate the Scriptures so that they find answers to life's challenges. Eventually the church will find its relevance once more.

Not all church members will find night-time courses appropriate. Young children need to sleep earlier, and the elderly may find travelling from their homes at night not only ardous but hazardous. However these methods can be adapted for sunday school teachers and parents to administer to their children; and for the elderly during the day.

By creating a greater emphasis on the Scriptures, we will address a great source of malnourishment in the Church today.