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Domestic electricity users subsidising others

Statement, DEUN, 12 July 2008

“Domestic electricity users are subsidising commercial and industrial electricity users”, said Molly Melhuish, analyst for the Domestic Energy Users’ Network (DEUN).

Domestic energy prices have risen 5% faster than inflation, compared to commercial prices 1½ %, and industrial prices 3% faster than inflation. (see note )

“Soaring energy costs are making domestic energy unaffordable.” This statement is from the DEUN Manifesto, released today.

The statement has been further strengthened by official energy statistics released two days after the Manifesto went to press.

Government says prices must rise because demand is growing. New power stations have to be built to meet the demand - but demand growth from commerce and industry has been 2 ½ times as fast as growth in domestic demand.

Electricity demand per household has not grown since 1974.

DEUN has met with officials, the Minister of Energy, and the Electricity Commission, and EECA since last December, to express concern about these subsidies. We described the same issues to the Finance and Expenditure Select Committee in hearings on the Emissions Trading Scheme.

“Domestic energy users will not tolerate paying more each year to build new power stations needed to supply growing commercial and industrial demand.”, said Molly Melhuish on behalf of DEUN.


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