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

Scoop's Pledgeme Campaign To Become A Not-For-Profit Finishes Sunday 29th - Please Pledge Now
AMA: Scoop's 'Invisible Paywall'


Gordon Campbell: On A Funeral In Asia, The Northland By-Election, And News Priorities

Supposedly, New Zealand’s destiny lies in Asia, and that was one of Foreign Minister Murray McCully’s rationales for his bungled reforms at MFAT. OK. So, if that’s the case why didn’t Prime Minister John Key – who was already in South Korea – stay in the region so that he could attend the state funeral on Sunday of Singapore’s founding leader Lee Kuan Yew?

Instead, Key returned to New Zealand to campaign in the Northland by-election, and Governor-General Sir Jerry Mateparae will represent this country in his place. Bad call. Key has put the domestic interests of his party ahead of New Zealand’s wider interests on the world stage. More>>

 

PARLIAMENT TODAY:

Inspector-General of Intelligence and Security: Inquiry Into GCSB Pacific Allegations

The complaints follow recent public allegations about GCSB activities. The complaints, and these public allegations, raise wider questions regarding the collection, retention and sharing of communications data. More>>

ALSO:

TPPA Investment Leak: "NZ Surrender To US" On Corporates Suing Governments

Professor Jane Kelsey: ‘As anticipated, the deal gives foreign investors from the TPPA countries special rights, and the power to sue the government in private offshore tribunals for massive damages if new laws, or even court decisions, significantly affected their bottom line’. More>>

ALSO:

Enrol By Friday: Time’s Almost Up Before Northland By-Election

If you want to vote in the Northland by-election and you’re not enrolled, time is running out. That’s the message from Northland Registrar of Electors Deborah Darton, with just a few days to go until the by-election this Saturday, 28 March. More>>

ALSO:

Werewolf: The Myth Of Steven Joyce

Gordon Campbell: The myth of competence that’s been woven around Steven Joyce – the Key government’s “Minister of Everything” and “Mr Fixit” – has been disseminated from high-rises to hamlets, across the country... More>>

ALSO:

RMTU: No Public Submissions On International Government Procurement Deal

“The government is preparing to assent to the Government Procurement Agreement, a World Trade Organisation Treaty which opens up New Zealand Government contracts to foreign companies and closes the door on local businesses and their workers. However the Foreign Affairs, Defence and Trade Select Committee is refusing to take public submissions on the decision.” More>>

ALSO:

Gordon Campbell:
On Pacific Spying

So New Zealand spied on its friends and allies in the Pacific – and has not only been passing on the results to the NSA, but has apparently passed on the details of the Pacific’s relations with Taiwan to our other best friends, the Chinese. On the side, the Key government has also been using the security services to gauge the chances of Trade Minister Tim Groser landing the top job at the WTO... More>>

ALSO:

State Housing Transfer: Salvation Army Opts Out

The Salvation Army has decided against negotiating with Government for the transfer of Housing New Zealand stock.
More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news