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

Another Leader Exiting: Statement From Peter Dunne

I have concluded, based on recent polling, and other soundings I have been taking over the last few weeks, that, the volatility and uncertainty notwithstanding, there is now a mood amongst Ōhāriu voters for a change of MP, which is unlikely to alter...

“I have therefore decided that it is time for me to stand aside, so the people of Ōhāriu can elect a new electorate MP. More>>

 

Gordon Campbell: On Labour’s Campaign Launch

One of the key motifs of Ardern’s speech was her repeated use of the phrase – “Now, what?” Cleverly, that looks like being Labour’s response to National’s ‘steady as it goes’ warning against not putting the economic ‘gains’ at risk. More>>

ALSO:

Lyndon Hood: Social Welfare, Explained

Speaking as someone who has seen better times and nowadays mostly operates by being really annoying and humiliating to deal with, I have some fellow feeling with the current system, so I’ll take this chance to set a few things straight.. More>>

ALSO:

Deregistered: Independent Board Decision On Family First

The Board considers that Family First has a purpose to promote its own particular views about marriage and the traditional family that cannot be determined to be for the public benefit in a way previously accepted as charitable... More>>

ALSO:

Transport Policies: Nats' New $10.5bn Roads Of National Significance

National is committing to the next generation of Roads of National Significance, National Party Transport Spokesperson Simon Bridges says. More>>

ALSO:

Gordon Campbell: On Why Labour Isn’t Responsible For Barnaby Joyce

As a desperate Turnbull government tries to treat the Barnaby Joyce affair as a Pauline Hanson fever dream – blame it on the foreigners! We’re the victims of the dastardly New Zealand Labour Party! – our own government has chosen to further that narrative, and make itself an accomplice. More>>

ALSO:

Rail: Greens Back Tauranga – Hamilton – Auckland Service

The Green Party today announced that it will trial a passenger rail service between Auckland, Hamilton and Tauranga starting in 2019, when it is in government. More>>

ALSO:

Housing: Voluntary Rental Warrant Of Fitness For Wellington

Wellington City Council is partnering with the University of Otago, Wellington, to launch a voluntary Rental Warrant of Fitness for minimum housing standards in Wellington, Mayor Justin Lester has announced. More>>

ALSO:

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election