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Key’s defence of power price rises falls flat

11 March 2014

Key’s defence of power price rises falls flat

John Key’s claim that lines charges and Transpower fees are to blame for recent power price rises doesn’t stack up, Green Party Co-leader Dr Russel Norman said today.

“John Key’s spin on power price rises does not stack up. He’s so busy trying to defend the big power companies he has failed to check the facts,” Dr Norman said.

“Ministry of Business, Innovation and Employment figures show only a quarter of the average power price increase last year was due to lines companies and Transpower. The rise was not due to grid investment as the Prime Minister is claiming. It went into the power companies’ coffers.”

Transpower said today its proportion of domestic power bills is small and any increase would be $1 a month.
“Average power prices have risen by $360 under National, and that money has in large gone to big energy companies not lines companies.

“John Key needs to stop protecting the big power companies because they are stifling innovation and competition, and keeping prices high,” said Dr Norman.

The Green Party has introduced a range of proposals to reduce energy costs, including its NZ Power plan, which is expected to cut household energy bills by $300 a year, and its Solar Homes loan policy to help consumers break free from the big energy companies.
"The Green Party will be campaigning on cheaper power prices this election because families have had enough,” said Dr Norman.
Reference:

Nov 2012Nov 2013Change
Weighted average retail charge (c/kWh)26.7827.570.79
Of which, lines and network charge10.5610.770.21
Share of change due to lines and network charges 27%

Source

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