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

 


New price monitoring shows competition strengthening

Hon Simon Bridges
Minister of Energy and Resources

15 July 2014

New price monitoring shows competition strengthening

New power price data released today shows the Government’s 2010 electricity reforms are making a real difference for consumers, says Energy and Resources Minister Simon Bridges.

"The sales data released by the Ministry of Business, Innovation and Employment for the year ending March 2014, shows the lowest annual price increase since 2001 at 2.3 per cent,” Mr Bridges says.

“Discounts and other benefits from retailers are becoming the new norm in an increasingly competitive electricity market and the new data captures what consumers have actually paid for their power, rather than the advertised price.”

MBIE has also released the June quarter of the price indicator known as the Quarterly Survey of Domestic Electricity Prices (QSDEP), which captures the latest April price increases.

For the June quarter, there has been an increase of 2.3 per cent. This was driven by a 6.7 per cent increase in lines charges — the component regulated by the Commerce Commission — as retailers passed on the significant investment costs associated with upgrading local networks.

The energy component — the part subject to competition — decreased by 0.7 per cent.

Mr Bridges says competition is the best way to keep prices down and the latest electricity data shows that the Government’s 2010 reforms have helped bring runaway power price increases under control.

“Since the National-led Government took office in 2008, we have halved the power price increases seen under the previous Labour Government.”

Latest figures released by the Electricity Authority show that consumers can save, on average, $155 per year by switching power retailers.

“I encourage consumers to continue to shop around for the best deal,” Mr Bridges says.

The latest electricity price data can be found here: http://www.med.govt.nz/sectors-industries/energy/energy-modelling/data/prices/electricity-prices

Background
In March 2014, the Minister of Energy and Resources announced changes to improve electricity price monitoring and provide more accurate information about how the market is performing.

http://www.beehive.govt.nz/release/changes-improve-electricity-price-monitoring

The previous way electricity prices were monitored wasn’t detailed enough to capture all the discounts and benefits being offered as a result of an increasingly competitive electricity market.

MBIE has worked with electricity retailers to develop the new approach, which reflects what people have actually paid for their electricity, including discounts and benefits.

The new data is based on the actual volume of electricity sold and the total revenue, to give the average price paid per kilowatt hour. It includes prompt payment, multi-fuel and online discounts, as well as incentive and retention payments, and rates paid by consumers on fixed-term plans.

MBIE and the Electricity Authority will continue to work to improve electricity price data, including access to, and analysis of, more detailed consumption data with a view to making this publically available in 2015.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Last Night’s Debate, And The Collins Accusation

Debating is a peculiar discipline in that what you say is less important than how you’re saying it. Looking poised, being articulate and staying on topic generally wins the day – and on that score, Labour leader David Cunliffe won what turned out to be a bruising encounter with Prime Minister John Key last night on TVNZ.

Cunliffe marshalled his points better, kept Key off balance and – more often than not – was in control of the general tenor of the contest. Labour supporters would have been heartened, and given some belated reassurance that maybe the change of leadership last year had been the right decision. More>>

 

Parliament Today:

Gordon Campbell: On Winston Peters' Latest Bout Of Immigrant Bashing

It is only one poll, but rather than cannibalising each other's vote, Colin Craig and Winston Peters do seem to be managing to find the room to co-exist... Few are questioning how Peters got to this happy place, and what it says about the mood of the electorate. More>>

ALSO:

More Immigration News: First People Trafficking Charges

The first people trafficking charges in New Zealand have been brought by Immigration New Zealand (INZ)... The defendants have been charged under the Crimes Act 1961 for arranging by deception the entry of 18 Indian nationals into New Zealand. More>>

Collins 'Misinterprets Media Reports': "Too Compromised To Remain Justice Minister"

Bizarre claims by Judith Collins this morning that she had been cleared of inappropriate behaviour by the Privacy Commissioner demonstrates she is too compromised to remain Justice Minister, Labour MP Grant Robertson says. More>>

ALSO:

Labour On Climate Change: Focus On The Now For The Future

A Labour Government will put in place a comprehensive climate change strategy focusing on both mitigation and adaptation, establish an independent Climate Commission and implement carbon budgeting, says Labour Climate Change spokesperson Moana Mackey. More>>

ALSO:

Gordon Campbell: On National’s Housing Assistance Plan

So, as many as 90,000 people could derive some benefit from National’s housing assistance plans for low and middle-income earners... Yet in reality, the benefits seem likely to be insignificant, and they will be skewed towards those at the top end of the income group that’s supposedly the target. More>>

ALSO:

Election Data Consortium: National’s Worst Case Scenario At Stage One?

A month out from the general election and ipredict traders are still forecasting National’s vote to slip below current polling levels and there is potential for it to fall further. More>>

ALSO:

From The Scoop Video Archive: PM Says SIS "Told Me" About OIA Release

In a press conference immediately following an controversial OIA release of notes on an SIS briefing to then Labour leader Phil Goff, Key said "at that point [Tucker] told me he'd release it ...". Since the release of Nicky Hager's 'Dirty Politics' Key has denied being personally informed and said references by officials to 'the PM' being told briefed referred to his office. He now says the same about his own statement. More>>

ALSO:

  • Scoop Video in the news - New questions over Key claims | NZ Herald News - Stuff.co.nz
  • Earlier - Felix Marwick: Laying out facts over SIS documents - Newstalk ZB
  • Labour - Director’s letter contradicts Key’s claims
  • ACT - The Letter - 26 days to go
  • TV3 Video - Housing issue nudges Dirty Politics aside - David Cunliffe: Key's SIS explanation 'defies belief' - SIS leak came from Key's Office - Goff - Key 'categorically denies' Slater OIA discussion - Video: Key faces more Dirty Politics questions

  • TVNZ - Winston Peters: ‘Dirty Politics' is a new low
  • The Nation - Debate Between Grant Robertson And Russel Norman
  • NZ First - “The Words Mean What I Say They Mean”
  • Get More From Scoop

     

    LATEST HEADLINES

     
     
     
     
     
    More RSS  RSS News AlertsNews Alerts
     
     
     
    Parliament
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news