Electricity surplus impact on the partial sale of SOEs
NEW ZEALAND FEDERATION INCORPORATED
From: Roy Reid- Grey Power New Zealand Federation President
Subject: The electricity surplus impact on the partial sale of electricity state assets.
FOR IMMEDIATE RELEASE
Grey Power believes that the current large electricity surplus, which is driving wholesale prices down, will cause real problems for the Government in its quest to partially sell off state owned energy assets.
Although companies expect to increase retail margins to make up for losses in electricity sales they may find that household consumers will not tolerate these ever-increasing electricity costs. These consumers were told that prices would need to rise to ensure power stations were profitable. However currently there are more power stations and lines than are required to meet demand.
Householders, not shareholders, should receive the dividend from these new assets in the form of lower power prices.