Grey Power Electricity

Grey Power Electricity

Grey Power Electricity is offering discounted electricity to its members. This will benefit all consumers, not only our members, because it will challenge all the big companies to match our prices.

This was a concept that Grey Power has pursued for several years, through prolonged negotiations with State-Owned power companies. When these negotiations failed, we approached other retailers that were independent of the dominant generator-retailers.

Though privately owned, these independents were set up to offer value for money rather than to capture obscene profits. Their business models accorded with what we always knew - retail margins are far too high and are lining the pockets of shareholders, directors, and top managers alike.

Grey Power Electricity has chosen one of these to support our concept: a lean and efficient retailer choosing to offer discounted electricity rather than trying to increase its asset base by building power stations that aren't needed or wanted.

Independent retailers have struggled in the past, because today's electricity market rules are designed to give a big advantage to the biggest generator-retailers. New market rules are being devised, right now, which will "justify" further price rises while making the independents struggle even more.

Therefore Grey Power Electricity will be involved in electricity market design as well as providing discounted electricity to our members. The greater the uptake of Grey Power Electricity, the more pressure there will be on the dominant generator-retailers to cut their own prices and profits. This will be good for all New Zealand consumers.

ENDS

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