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

 


Contact Energy’s Claims Refuted

Electricity Networks Association

19 February 2014

Contact Energy’s Claims Refuted

The CEO of Contact Energy’s claim that electricity distribution companies are ‘stifling innovation’ is an attempt to divert attention from issues much closer to home, says the Electricity Networks Association.

The Association represents the country’s 29 distribution companies.

“It seems a pretty blatant attempt to obscure a hefty profit lift by Contact when electricity prices are such a sensitive issue for companies like his,“ the ENA’s Chairman, Ken Sutherland, says.

“Mr Barnes claim that ‘network charges are about half the bill’ and that Contact’s ‘are only about one-third’ is also misleading.”

“The truth is almost exactly the opposite.”

“Independent analysis of official data by accounting firm PriceWaterhouseCoopers (PwC) showed that the combined generator-retailer portion of a typical domestic power bill was 52%, “ he says.

“Contact is a combined generator-retailer, and it would be highly unlikely that their percentage would be very different from this.

“The same data showed that the combined Transpower and distributor charges amounted to less than a third of the total.”

“And not only that, but distributors are essentially paying Transpower to bring Contact Energy’s power to the marketplace.”

Mr Sutherland says that in case there were claims that domestic users were getting better treatment than commercial and industrial users, the Association also had PwC look at the breakdown of the overall New Zealand power bill.

“This painted an even starker picture, with the combined distribution and Transpower charges amounting to just 28.5% of the delivered power bill.”

“As for the claim that different distribution charging options are inhibiting Contact Energy’s ability to ‘innovate’ goes, our industry’s first priority is to meet consumers’ needs,” he says.

“Customers are not a homogenous commodity. Their needs vary depending on their location and circumstances, and our charges reflect this.”

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news