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.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines



#soperraid: Police Search Wellington Apartment Of TV3 Journalist

Police on Tuesday morning began searching the home of another Wellington journalist... police were searching the Wellington apartment of TV3’s Heather du Plessis-Allan as part of an investigation into her report on the unlicensed purchase of a rifle. More>>


Relationship Property, Declaratory Judgments, And... New Law Commission To Review Search And Surveillance Law

“This joint review will consider how this law has operated since it was passed, and whether any changes are needed to respond to issues such as the impact of modern technology on the ability of Police and other authorities to prevent and investigate crime,” says Ms Adams. More>>


Housing Issues: Homelessness On The Horizon For Baby Boomers

Baby Boomers who have held down jobs and contributed to the well-being of New Zealand through their taxes may yet become homeless in late middle age or early retirement without urgent Government action, says The Salvation Army. More>>


Treasury Has Doubts On Christchurch Rebuild And... Auditor-General Follows Up On EQC

Despite the improvements made, EQC could still learn better from complaints and improve its customer focus and interactions... Although the programme is nearing completion, EQC needs to provide the best service possible for the home owners whose homes are still to be repaired. More>>


Man Who Banned 'Into The River' Out The Door: Appointments To The Film And Literature Board Of Review

Internal Affairs Minister Peter Dunne has announced seven appointments to the Film and Literature Board of Review... “The new members of the Board... will provide a strong mix of skills and experience to help the Board carry out its functions, while representing a cross-section of society.” More>>


Climate Marches: New Zealanders March For Solutions Not Pollution

Ahead of the UN Climate Summit in Paris more than 15,000 New Zealanders have taken part in the Peoples Climate march in Auckland, kicking off the largest climate mobilisation the world has ever seen... More>>


Labour: Little Announces New Shadow Cabinet

“Labour had an impressive intake of fresh faces after last year’s election and newest MPs have now had a year to show what they’re made of. This reshuffle rewards hard work and continues my drive to renew our Caucus line up." More>>


Because Reasons: Someone Reckons David Seymour Is Politician Of The Year

Trans Tasman's 11th annual Roll Call has thrown a curve ball this year, ignoring the likes of John Key, Bill English, and Winston Peters to pick its politician of the year from the ranks of the new generation. More>>


Whaling: NZ Deeply Disappointed By Japan's Decision

“New Zealand is strongly opposed to whaling in the Southern Ocean. We call on Japan to take heed of the 2014 International Court of Justice decision and international scientific advice concerning their whaling activities.” More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news