Parliament

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

 

Contact confirms asset sales mean higher power prices

2 April 2013

Contact confirms asset sales mean higher power prices

Contact Energy’s call for higher power prices to satisfy the profit demands of private investors is confirmation that asset sales would mean Kiwi households would pay more for electricity, Green Party Co-leader Dr Russel Norman said today.

Contact Energy CEO Dennis Barnes has today called for higher power prices to generate higher returns for private investors. Contact’s ‘competitors’ conspicuously failed to disagree with Contact’s push for higher electricity prices.

“If National sells our electricity assets, it will mean higher power prices for Kiwi families and businesses,” said Dr Norman.

“It is no surprise that Contact is using the asset sales to push for another power price increase.

“Mr Barnes is right; private investors need larger profits than the government to make a return on investment because their cost of capital is higher. And higher profits means higher power prices.

“The excuse that capital is needed to fund new power stations doesn’t stack up. A raft of new generation projects have been cancelled or suspended in the last few years due to static demand. The risk that Tiwai Point will close means more likelihood of a surplus of generation capacity than a shortage.

“New Zealanders don’t want our assets sold. We don’t want to pay more for our electricity so that foreign investors can make fat profits at our expense.

“National should put the asset sales programme on hold until the referendum is held, and it should listen to the voice of New Zealand when the public votes ‘no’ to asset sales,” said Dr Norman.

ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The
America’s Cup

The fact New Zealand now reigns supreme once again in the most sophisticated contest in the world’s most elite sport – yacht racing – can’t help but reflect the trajectory the country has been on since the 1980s...

Elite sport used to feel more like a collective, shared experience. It was our team, composed of people who lived and worked like us. Now, not so much. More>>

 

PM's Press Conference: Red Socks And Secret Tapes

Prime Minister Bill English began his post-cabinet press conference by explaining how well the National Party's annual conference went. He also mentioned today's announcement of changes to the EQC disaster insurance legislation and wished Emirates Team New Zealand well in the America's Cup. More>>

Max Rashbrooke: On How To Make Government More Open

International surveys, while often complimentary, have also pinpointed major weaknesses: political donations are badly regulated, for instance, and appointments to government boards frequently go to those with strong political connections. More>>

In Court: Hamilton Student's Lawsuit Over Climate Change Policy

A law student from Hamilton is preparing to challenge the Government in the High Court on Monday over what she says is a “failure” to properly address climate change. More>>

ALSO:

Gordon Campbell: On The Fallout From The Barclay Tape

This is hardly a case of cleaning out your desk and being turfed out onto the pavement. As others have pointed out, the disgraced Clutha-Southland MP will remain on the public payroll for three months until the election, and for three months afterwards. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election
 
 
 
  • PublicAddress
  • Pundit
  • Kiwiblog