WE ARE PART OF YOUR FUTURE

WELLINGTON CENTRAL GREY POWER P O Box 13 755, Johnsonville, Wellington 6440

Media release June 2013

Grey Power Wellington criticizes the Electricity Authority and Power Asset Float

The Electricity Authority, in its recent public attack on the work of three electricity specialists, is being totally unreasonable and acting outside their role as a regulator.

Chairman Brent Layton stated to a meeting in Auckland that “critics Melhuish, Leyland and Bertram claim the Authority approach is light-touch regulation of electricity markets.” He then described five criticisms he attributed to one or more of the critics, and rebutted them without allowing them to explain or defend their positions.

The Authority’s statutory objective for being is “for the long term benefit of consumers”, so when are they going to get on with working on their stated objective?

We can argue about reports and validity of data but everyone knows that electricity prices have continued to rise at an alarming rate over the last decade and the profits to the electricity sector have been far in excess of what is reasonable and in some cases quite obscene.

Grey Power’s long-standing energy policies state that energy is a vital and essential service, and any price increases must be justified. Power prices are too high, based on an inflated value of assets, and prices must fall in real terms.

The recent floating of Mighty River Power has resulted in investors already losing a percentage of their investment and the proposed float of Meridian cannot go ahead as proposed. Even the Minister of Finance has suggested this as well with the possibly of floating in 2 or more stages but I suggest half a float in a bad investment is still a bad investment.

Grey Power Wellington is committed to a campaign to achieve a reduced and fair price so that our families with young children and our older citizens can afford to heat their homes and maintain a healthy environment.

Bruce McLachlan President Wellington Central Grey Power

ENDS

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