Hon Jim Anderton
Progressive Party leader
MP for Wigram

22 May 2009 Media release

Winter rebate from electricity companies would be appreciated

Knowledge that many elderly New Zealanders huddle under blankets rather than turn on unaffordable heating should be a wake-up call to the power companies to return a winter rebate to their consumers this winter, Progressive Wigram MP Jim Anderton said today.

“For many New Zealanders, this wintry weather brings on a bitter struggle with the cold and the dilemma of whether they can turn on a heater or not. Low income households, the elderly and students fear their electricity bills and well they might. I remember when the electricity bills came every two months – now the monthly bill is the same – or more – than the bi-monthly one was,” Jim Anderton said.

“The Commerce Commission’s principle investigation into the wholesale or retail electricity markets which showed that the electricity companies have not breached Part 2 of the Commerce Act but their extra $4.3 billion in earnings from 2001 to mid-2007 reveals they are charging with a take no prisoners mentality. The electricity companies’ profits are at the expense of New Zealand’s most economically vulnerable.

“Since 2002, I have pushed for a return to consumers of some of the big profit increases from the state-owned power companies to help them with winter power bills. Low income households could be given $200 toward winter heating costs and power companies would still contribute as much to the government as they did last year.

“$200 would mean some households had a month of relief from winter heating costs. For superannuitants, beneficiaries and people who have lost their jobs in the downturn, it would make a huge difference.

“The Commerce Commission’s ruling on the power companies should not be seen as sign off for a return to business as usual. I am sure that New Zealanders would be hugely relieved to see the companies acting in the interests’ of their consumers with a winter rebate during this winter,” Jim Anderton said.

ENDS

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