Thursday, 14 June 2001 Media Statement
Electricity price claims exaggerated
Energy Minister Pete Hodgson says New Zealanders should be wary of over-reacting to exaggerated statements and reports
about electricity prices.
"The truth is that current wholesale electricity market prices signify a modest chance of supply difficulties later this
winter," Mr Hodgson said.
"To date no power retailer has put up prices for domestic consumers in response to the wholesale price rise. Any
suggestions that household power bills may increase by hundreds of dollars a month are just wild and irresponsible
speculation.
"I am concerned that some householders may overreact and put their health in jeopardy by going without heating on cold
days for fear of astronomical power bills. There is no need for that.
"I am also concerned at some alarmist reporting of this issue. When asked at a Parliamentary select committee today to
guarantee there would be no power cuts this winter I stated the obvious: that if it did not rain for three months, the
lights would go out. I also pointed out that New Zealand had never got through three months of winter with no rain. I
was then reported to be issuing a warning about power cuts.
"I am not warning anyone of power cuts. I am saying there is a modest chance of supply difficulties this winter."
ENDS