More Government = Higher Power Prices
Friday 16 Jul 2004 Ken Shirley Press Releases -- Energy
ACT New Zealand Energy Spokesman today labelled electricity price rises of 10.4 percent over the past year - revealed
in data released as part of the consumer price index - the fruits of Labour's increasing government domination and
regulation of the electricity sector.
"This is one statistic the Government would rather keep quiet - it shows what Labour's so-called reforms are in fact
delivering to consumers: higher power prices," Mr Shirley said.
"These power price rises are a stark contrast to Energy Minister Pete Hodgson's empty promises, as opposition energy
spokesman in 1999, that Labour would see household power prices reduced.
"Labour needs to take responsibility for increasing the cost of power - 21.3 percent since it took office - to
consumers. This Government has been in power for five years, and can no longer blame previous governments.
"Other factors relating to increased government dominance and regulatory cost include: extra levies to pay for reserve
generation capacity, increased regulation and associated compliance costs, and increased State dominance of the retail
and generation sector.
"Government-owned power companies account for 65 per cent of the electricity market, and Labour continues to cream
large profits and dividends from its SOEs - Mighty River Power, Genesis, and Meridian. In the last financial year, to 30
June 2003:
· Mighty River Power posted its best yet profit of $113.5 million, more than double the $47 million for the year
before.
· Meridian Energy posted a full-year profit of $109 million, up $25 million on the previous year.
· Genesis recorded a $61.1 million profit, a jump of 27 percent from the previous year.
"The worst news, however, is that Mr Hodgson has said he thinks electricity prices must rise even further. Clearly
Labour's `more government, more regulation' approach is a failure and is adding to peoples' power bills rather than
reducing them," Mr Shirley said.
ENDS
For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at
act@parliament.govt.nz.