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Bleak Day for Many in Regions as Power Prices Look To Rise

Fletcher Tabuteau MP

New Zealand First

Spokesperson for Energy
17 MAY 2016


Bleak Day for Many in Regions as Power Prices Look To Rise

As predicted, many in regional NZ are likely to be slammed with higher power charges to guarantee profits and fat salaries of big energy companies and the Electricity Authority, says New Zealand First.

“Many of those facing higher prices are in regions that are already struggling – like Northland and the West Coast,” says Commerce Spokesperson Fletcher Tabuteau.

“Instead of acting in the interests of all New Zealand the authority’s plan for power transmission charges disadvantages many Kiwis and ignores the obvious and fair solution – smoothing transmission line costs, that is, everyone pays the same price.

“This can be done by using the $194m plus in profits generated by Transpower. Instead, Kiwi households are paying the cost for its poorly considered infrastructure investment while foreign-owned Tiwai Point aluminium smelter is likely to benefit by reduced charges of $21 million.

“There’s no doubt that people living in Invercargill, Tasman, Christchurch and Wellington, areas which come off better in this plan, will feel some sympathy for people being hammered with higher charges.

“We are all Kiwis, our forebears built the power stations, and we should all reap the benefits. Privatisation, the drive for profits and big salaries have ripped equality out of the power industry.

“Most people paying power bills don’t know they are paying $37 each year on average to enrich highly paid bureaucrats at the Electricity Authority. It has 63 permanent staff earning an average salary of $143,000 a year and a chairman who took home $221,000. The CEO is on about $6,500 a week.

“These are the people who have decided Northlanders and West Coasters, and some in Auckland, the Waikato and Eastern Bay of Plenty can handle an increase in power bills. We say this is a further attack on ordinary Kiwis, and we call for fairness across the country.”

ENDS


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