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

 


Shearer claims on power pricing misleading our customers

Shearer claims on power pricing a “work of fiction” – misleading our customers

Claims by Labour Energy spokesperson, David Shearer, about rocketing power prices and “outrageous” profits are plainly incorrect and grossly misleading for New Zealand electricity consumers.

Mighty River Power Chief Executive, Doug Heffernan, says the official data from the industry regulator (Electricity Authority) and audited results reported by major power companies this week tell a very different story of a highly competitive market with flat to declining energy prices.

“It’s misleading, deceptive and unhelpful for our customers to have someone suggesting power prices are rocketing when the Electricity Authority, the regulator, says that the competitive energy price is up only 0.3% in the past year, and 0.5% in each of the past three years.

“Our own audited results, released today show that average energy prices for our 380,000 customers were flat over the year to 30 June 2014, and actually fell 4% in the final quarter of the financial year.” The recent results from other major electricity companies showed a very similar picture, Dr Heffernan says.

“At a household level, total pricing for our residential customers – including the impact of regulator approved lines and transmission charges – went up about 1.7% on average over the past year, in line with general inflation. Many people used less power with consumption per customer down 2.5%, this meant our customers on average paid about 1% less in dollar terms on their actual electricity bills than they did in the previous year.”

Claims of “outrageous” profit in Mighty River Power’s FY2014 results are equally incorrect – with reported underlying earnings up just 3% on the prior year (FY2013), Dr Heffernan says.

ENDS.

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Gordon Campbell: On Tiwai Point (And Saying “No” In Greece)

Its hard to see how Rio Tinto’s one month delay in announcing its intentions about the Tiwai Point aluminium smelter is a good sign for (a) the jobs of the workers affected or (b) for the New Zealand taxpayer. More>>

ALSO:

Half Empty: Dairy Product Prices Extend Slide To Six-Year Low

Dairy product prices continued their slide, paced by whole milk power, in the latest GlobalDairyTrade auction, weakening to the lowest level in six years. More>>

ALSO:

Copper Broadband: Regulator Set To Keep Chorus Pricing Largely Unchanged

The Commerce Commission looks likely to settle on a price close to its original decision on what telecommunications network operator Chorus can charge its customers, though it probably won’t backdate any update. More>>

ALSO:

Lower Levy For Safer Cars: ACC Backtracks On Safety Assessments

Dog and Lemon: “The ACC has based the entire levy system on a set of badly flawed data from Monash University. This Monash data is riddled with errors and false assumptions; that’s the real reason for the multiple mistakes in setting ACC levies.” More>>

ALSO:

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news