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.”