INDEPENDENT NEWS

Low-Income NZers To Subsidise Power Companies

Published: Wed 25 Nov 2009 04:49 PM
Low-Income NZers To Subsidise Power Companies
John Boscawen MP, ACT New Zealand
Wednesday, November 25 2009
ACT New Zealand ETS Spokesman John Boscawen today condemned National and the Maori Party for ramming the Emissions Trading Scheme into law today – thereby placing a massive financial burden on low-income New Zealanders.
"Implementation of the ETS will see many families struggling, while electricity companies enjoy windfall profits at their expense," Mr Boscawen said.
"From July 1 2010 all electricity companies will be able to increase their prices five percent, rising to 10 percent by January 1 2013 – regardless of whether they incur any additional costs under the ETS. Power companies generating hydro or geothermal energy – who will not have to pay for emissions – will make huge profits at Kiwi families’ expense.
"Electricity companies charge the same price for power supplied – regardless of their generating costs – with the price dictated by the company with the highest production cost. Companies generating from coal or oil will incur costs for their emissions, pushing up their prices and allowing all other companies to raise their prices.
"Never before in this country’s history has there been such a massive transfer of wealth. National and the Maori Party have squandered the chance to fix this, choosing instead to compensate five iwi while the rest of New Zealand pays the price," Mr Boscawen said
ENDS

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