Residential price rises signal need for change

Residential price rises signal need for change

Impending price rises for residential power users are a sign of the extreme nature of the current crisis, according to MEUG, the Major Electricity Users’ Group.

Terrence Currie, Chairman of the Major Electricity Users’ Group, said the group would not wish residential users to be hurt as businesses have been by high prices.

“We wouldn’t wish the crisis in prices on anyone else.

“MEUG has already asked for the profitability of generators to be investigated by the Parliamentary Commerce Select Committee into the electricity sector. It is appropriate that proposed residential price increases now also be inquired into.

“If power companies actually have evidence that they are not profiting from the current crisis and that their costs have increased to justify a price rise three times the rate of inflation, then they should be able to explain that publicly in the Commerce Committee inquiry.”

Mr Currie said the situation would bring home to all users the importance of the Government dealing comprehensively and conclusively with the electricity market.

“The structure of the market needs reviewing, but not in a piecemeal way.

“It is critical to properly assess all feasible policy options in a robust and transparent round of consultations with the public before legislation is drafted.

“We strongly recommend the Government take this course and not act precipitously. Without having seen all the options on the table we prefer to have mechanisms that improve on the existing market structures rather than dumping the market as a whole.”

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