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Contact's shocker power surge needs short circuit

Contact's shocker power surge needs to be short circuited, says Alliance

Alliance Party media release FOR IMMEDIATE RELEASE Tuesday 30 September 2008

The Alliance says a massive surge in electricity prices for customers of Contact Energy in the South Island is outrageous.

Alliance Party co-leader Kay Murray says 11% price hike in November to South Island consumers needs to be resisted by the public.

She says that Contact have just doubled directors fees, even though power prices have increased three times the rate of inflation rate over the last six years.

"After making huge profits by sitting on their hands and not increasing electricity capacity, Contact Energy have been able to charge much more for electricity. Now the New Zealanders who paid for and built the power plants are being forced by Contact to pay higher and higher power prices."

Ms Murray says the situation is a legacy of disastrous 1990s National Party policies that the current Labour Government have let slide.

"The behaviour of Contact Energy and it Australian owners is yet more evidence that the free market approach to electricity was about filling corporate coffers rather than getting power to the people."

The Alliance will put all electricity generation and supply under public ownership and community control, to ensure security of supply and affordable power prices for New Zealanders.

"A vote for Alliance is a vote for affordable power."


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