G R E Y P O W E R New Zealand Federation

G R E Y P O W E R New Zealand Federation (Inc)
Energy Portfolio

Chair. Judy Lamont. 07 323 6316 judy.lamont[at]clear.net.nz
Duncan McDonald dunval[at]paradise.net.nz
Technical Adviser, Molly Melhuish melhuish[at]xtra.co.nz
Off Board. Keith Allum. Peter Rutledge

Customer Compensation Scheme will mean higher power prices

Grey Power has opposed the Customer Compensation Scheme ever since it was first proposed over a year ago. The money that retailers pay out to consumers will simply be recovered through price increases later on.

In previous conservation campaigns, elderly consumers were the first to cut back on electricity, even when they were already using too little. They were then, and are as always, conservers of electricity.

We agree with the Electricity Authority that all reasonable measures should be used to prevent hydro shortages in dry years. The Compensation Scheme is not a reasonable measure, because companies treat the Scheme as an additional risk. They price that risk fully into their customers' power bills.

We are disappointed that the Authority's Questions and Answers document does not even mention the likelihood of higher power prices resulting from the scheme.

Grey Power calls for electricity regulation to protect consumers, instead of protecting the electricity industry's profitability.

ENDS

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