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

 


Power price rise shows it’s time to fix broken market

30 September 2013

Power price rise shows it’s time to fix broken market

The rocketing price of electricity and rising power company profits show that National’s broken electricity market needs fixing, Green Party energy spokesperson Gareth Hughes said today.

New figures of the Ministry of Business, Innovation and Employment show that residential electricity prices rose 3% in the past year, four times the rate of inflation, despite demand falling by 2.5%. In the past five years, demand has fallen by 1.6% yet electricity prices have risen by 27%, two and half times the rate of inflation. The four major electricity companies all reported rising profits for the past year.

The current ‘regulated market’ model was introduced by National in the 1990s and electricity prices have been rising at around twice the rate of inflation on average ever since. The Green Party, along with Labour, has proposed to introduce a ‘single buyer’ model called NZ power to fix the broken market and lower electricity prices by $300 per year for each household.

“It’s plain and simple: Kiwis are paying too much for power because of National’s broken electricity market. The current Government’s asset sales will only make the situation worse as private investors demand high returns,” said Mr Hughes.

“We’re using less power but prices and profits keep on rising. That’s a sure sign that the current market is broken.

“Electricity generation costs aren’t rising significantly – the vast bulk of our electricity is produced at very low cost by hydrodams that were built decades ago with public money. In fact, electricity generation from more expensive fossil fuel plants fell last year.

“National’s expensive asset sales are only going to increase the upward pressure on power prices.

“It’s time to dump National’s failed electricity reforms. We need to introduce NZ Power, which will work on behalf of electricity consumers to bring power prices down to a fair level. That will save families and businesses money, and improve health by allowing families to adequately heat their homes,” said Mr Hughes.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

"New Faces, Wise Heads": Andrew Little Announces New Labour Line Up

Labour Leader Andrew Little today announced a bold new caucus line up which brings forward new talent and draws on the party’s depth of experience.

“Labour has many new and highly capable MPs who will have the opportunity to prove their ability. At the same time our senior hands will be on deck to take the fight to the National-led Government and support our upcoming stars,” Andrew Little says.

“I am pleased to announce Annette King will be my deputy for the coming year. In recent weeks she has shown how crucial her wisdom and strength is to Labour. More>>

 

Parliament Today:

Gordon Campbell: On Rick Ellis As Te Papa’s New CEO

The recent appointment of former TVNZ boss Rick Ellis to head Te Papa has copped a fair bit of criticism. Much of it has been inspired by the suspicion that Ellis has been hired to pursue the same purely commercial goals as he did at TVNZ, while similarly neglecting the serious cultural side of his mandate. More>>

Passport Cancellation, Surveillance: Draft 'Foreign Fighters Legislation' Released

The final draft of the Countering Terrorist Fighters Legislation Bill contains proposals previously announced by Mr Key in a major national security speech earlier this month. More>>

ALSO:

Related

Joint Statement: Establishment Of NZ-China Strategic Partnership

At the invitation of Governor-General Lt Gen The Rt Hon Sir Jerry Mateparae and Prime Minister The Rt Hon John Key of New Zealand, President Xi Jinping of the People’s Republic of China made a state visit to New Zealand from 19 to 21 November 2014... More>>

ALSO:


Savings Targets: Health Procurement Plan Changes Direction

Next steps in implementing DHB shared services programme Health Minister Jonathan Coleman says the Government has agreed to explore a proposal put forward by DHBs to move implementation of the shared services programme to a DHB-owned vehicle. More>>

ALSO:

More on Health Policy:

Auckland Unification: 'No IT Cost Blowout' (Just More Expensive)

Following discussion of an update on Auckland Council’s Information Services Transformational Programme at today’s Finance and Performance Committee, council has released the report publicly. More>>

ALSO:

Other Expensive Things:

Gordon Campbell: On The SAS Role Against Islamic State, And Podemos

Only 25% of the US bombing runs are even managing to locate IS targets worth bombing. As the NYT explains at length, this underlines the need for better on-the-ground intelligence to direct the air campaign to where the bad guys have holed up... More>>

ALSO:

Public Service: Commission Calls For Answers On Handling Of CERA Harassment

EEO Commissioner Dr Jackie Blue is deeply concerned about the way in which the State Services Commission has handled sexual allegations made against CERA chief executive Roger Sutton this week and is calling for answers. More>>

ALSO:

Gordon Campbell:
On Andrew Little’s Victory

So Andrew Little has won the leadership – by the narrowest possible margin – from Grant Robertson, and has already been depicted by commentators as being simultaneously (a) the creature of the trade unions and (b) the most centrist of the four candidates, which would be an interesting trick to see someone try in a game of Twister. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news