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

 


No savings with power switching

David Shearer
Energy Spokesperson

4 April 2014

No savings with power switching

A report has dismissed the government’s grand claims that customers who switch power companies have brought big savings to the electricity market, says Labour’s Energy spokesperson David Shearer.

“This is a blow to the government which has actively touted the benefits of a switching facility that would bring a competitive market that in turn would deliver lower prices.

“The Covec report, commissioned by the Ministry of Business and Innovation and Employment showed that the $15 million the government has put into electricity switching has had no impact on overall electricity prices, nor has it increased competition between power companies.

“Despite investing $15 million into switching, the estimated 62,000 to 79,000 consumers who used the facility saved just over $16 million.

“Spending $15 million to help some electricity consumers save just $16 million is hardly worthwhile. Taxpayers are effectively subsidising those who changed.

“Meanwhile underlying electricity prices have increased four times the rate of inflation in the past year.

“The electricity system is not working. Demand is declining while there is an abundance of supply. If the market was truly competitive, prices would be coming down, not going up. The Government is out of touch with how New Zealanders feel about increasing power bills,” said David Shearer.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Parliament Today:

Werewolf: The Defence Pretence

Last year, the world began spending more money on weapons again, for the first time since 2011... New Zealand belongs to a region – Asia and Oceania – where military spending rose sharply in 2015, by 5.4 per cent. More>>

ALSO:

Gordon Campbell: On Not Crying Foul, Argentina

So a couple of guys found to be criminally liable of environmental pollution in Argentina lodge an application with the Overseas Investment Office… in order to buy some prime New Zealand rural land. Seems that their factory back home had carelessly and/or intentionally discharged toxic waste into the Lujan river. Bummer... More>>

ALSO:

Urban & Rural: $303m To Merge And Modernise New Zealand’s Fire Services

Internal Affairs Minister Peter Dunne today announced funding of $303 million over five years to combine urban and rural fire services into one organisation from mid-2017. More>>

ALSO:

High Trust Regime: What Did The PM Tell His Lawyer About Foreign Trusts?

The Government stopped the IRD from reviewing New Zealand foreign trusts shortly after the Prime Minister’s lawyer wrote to the Revenue Minister claiming John Key had promised him the regime would not be changed. More>>

ALSO:

Road Crime: Wicked Campers Vans Classified As Objectionable

The definition of publication includes any "thing that has printed or impressed upon it, or otherwise shown upon it, 1 or more (or a combination of 1 or more) images, representations, signs, statements, or words", The Classification Office has previously classified such 'things' as billboards, t-shirts, and even a drink can. This is the first time the Classification Office has classified a vehicle. More>>

ALSO:

'When New' Repairs: Landmark EQC Settlement

The Earthquake Commission has cut a deal with 98 Canterbury homeowners that affirms the government entity's responsibility to repair earthquake-damaged property to a 'when new' state, as well as covering repairs for undamaged parts of a property and clarifying its position on cash settlement calculations. More>>

ALSO:

Gordon Campbell: On Kiwirail’s Latest Stint In The Dogbox

The denigration of Kiwirail continues. The latest review (based on a 2014 assessment) of the options facing the company have enabled Kiwirail to be hung out to dry once again as a liability and burden on the taxpayer. More>>

ALSO:

Royal Society Report: Good Opportunities To Act Now On Climate Change

There are many actions New Zealand can and should take now to reduce the threat of climate change and transition to a low-carbon economy, a report released today by the Royal Society of New Zealand finds... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news