Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Consumers challenge Unison line charge increases

Consumer Coalition On Energy (Cc93)
Spokesperson: David Russell

The Coalition:

Business New Zealand
Consumers’ Institute
Federated Farmers of NZ Inc
Major Electricity Users’ Group

28 January 2004

Media release: Consumers challenge Unison line charge increases

''The 23% average increase in line charges announced by Unison for the 103,000 consumers in the Hawkes Bay, Rotorua and Taupo regions is at the least precipitous and we believe the Commerce Commission should use all its powers to protect the interests of consumers by seeking a stay in changes to prices until a full investigation is completed,'' said David Russell, spokesperson for the Consumer Coalition on Energy (CC93).

“The main reason for the announced increases appears to be to provide capital to replace aging assets and for expansion to meet new demand. As and when new assets are added to the network, costs may rise, and at that point charges can reasonably be expected to increase, but this shouldn’t happen ahead of those assets being built. Also to be considered is whether the investment program is reasonable and whether the rate of return reflects the relatively low risk of the line monopoly. There is every incentive on Unison and other line companies to build assets ahead of when they are needed and to push for profits above fair returns.

“The announcements by Unison appear to be a return to the days when line companies routinely and unilaterally announced price rises. Consumers have not been consulted by Unison on the price rises or the reasons for them.

The Commerce Act was changed in 2001 and the Commerce Commission given the task of overseeing the regulatory regime so that consumers were not prone to such behaviour. We now ask the Commission to seek a stay in any price rises until the reasons for those have been discussed fully with both consumers and the Commission,” concluded Mr Russell.


© Scoop Media

Business Headlines | Sci-Tech Headlines


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news