Concern at rising energy prices.

Grey Power National President, Mr Les Howard, has today expressed concern at rising energy prices.

"Meridian Energy raised electricity prices to domestic consumers in September 2008 by approximately 8%, well above the rate of inflation and at a time when the hydro lakes were low in capacity."

"Now with the lakes are full and water being spilled down the Waitaki River, Meridian is again raising the prices by a further 7%."

"This is the second price increase in less than 6 months. The excuse this time is to raise more finance for future generations."

"Electricity was costing 1 cent per unit to produce when the water was spilt down the slipway and Meridian was charging the domestic consumers 15 to 16 cents per unit. Not a bad profit!!! It is only a few years ago that Meridian sold its interest in generating plants in Australia for approximately 600 million dollars and gave the money to the government. It is therefore no surprise to see the new National Minister of Energy has slapped Meridian on the wrist with a œwet bus ticket by telling them he is disappointed in them."

"It is well past time the consumers had representation on the Electricity Commission and the commission did its job rather than the Minister’s bidding. Grey Power has long advocated for such representation, for lower energy prices and for the government to regulate the industry."

ENDS

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