Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Electricity pricing reports released

Tuesday, 27 January 2004 Media Statement
Electricity pricing reports released

Electricity retailers appear to be collecting about the same margin between retail and wholesale prices as they did before the industry reforms of the late 1990s, says an officials' report released by Energy Minister Pete Hodgson today.

The report analyses electricity price movements over the past decade and concludes there is no clear evidence of a "step change" in profit margins for retailers.

It says recent increases in electricity retail prices can be related to increases in the cost of new generation, as cheap Maui gas supplies run down and generators anticipate more expensive gas and new hydro, wind and geothermal options.

The report also notes a slow improvement in the level of retail competition, with consumers gradually switching from incumbent retailers to alternative suppliers.

"Keeping a close watch on the pricing behaviour of the electricity industry is an important part of the government's approach to energy policy," Mr Hodgson said.

"The conclusions in this report are necessarily tentative, but should usefully inform debate about the fairness of electricity prices. The analysis is reassuring, as far as it goes, with no evidence of price gouging coming through. Competition is essential for fair prices and the improvement in that area must continue. The recently established Electricity Commission will be pursuing a number of important initiatives to encourage this."

A second report examines Contact Energy's pricing in the Invercargill area as a case study, following community reaction to recent price increases.

The report finds that Contact has passed on cost increases, that its current domestic tariff appears to give a return at the middle to high end of a reasonable range, and that it is losing market share as customers switch to other retailers.

Attached: "Electricity Prices and Retail Competition" and "Contact Energy Pricing in the Invercargill Area", reports to the minister from the Ministry of Economic Development.

See... Electricity Prices and Retail Competition - Report


Contact Energy Pricing in the Invercargill Area

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Sector Opposes Bill: Local Government Bill Timeframe Extended

The Minister of Local Government Peseta Sam Lotu-Iiga has asked the Select Committee to extend the report back date for the Local Government Act 2002 Amendment Bill (No 2). More>>


Breed Laws Don’t Work: Vets On New National Dog Control Plan

It is pleasing therefore to see Louise Upston Associate Minister for Local Government calling for a comprehensive solution... However, relying on breed specific laws to manage dog aggression will not work. More>>


Not Waiting On Select Committee: Green Party Releases Medically-Assisted Dying Policy

“Adults with a terminal illness should have the right to choose a medically assisted death,” Green Party health spokesperson Kevin Hague said. “The Green Party does not support extending assisted dying to people who aren't terminally ill because we can’t be confident that this won't further marginalise the lives of people with disabilities." More>>


General Election Review: Changes To Electoral Act Introduced

More effective systems in polling places and earlier counting of advanced votes are on their way through proposed changes to our electoral laws, Justice Minister Amy Adams says. More>>

Gordon Campbell: On Our Posturing At The UN

In New York, Key basically took an old May 2 Washington Post article written by Barack Obama, recycled it back to the Americans, and still scored headlines here at home… We’ve had a double serving of this kind of comfort food. More>>


Treaty Settlements: Bills Delayed As NZ First Pulls Support

Ngāruahine, Te Atiawa and Taranaki are reeling today as they learnt that the third and final readings of each Iwi’s Historical Treaty Settlement Bills scheduled for this Friday, have been put in jeopardy by the actions of NZ First. More>>


Gordon Campbell: On The Damage De-Regulation Is Doing To Fisheries And Education, Plus Kate Tempest

Our faith in the benign workings of the market – and of the light-handed regulation that goes with it – has had a body count. Back in 1992, the free market friendly Health Safety and Employment Act gutted the labour inspectorate and turned forestry, mining and other workplace sites into death traps, long before the Pike River disaster. More>>

Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news