10 February 2014
Kiwi families know power price rises are unfair
Kiwi families know that something is wrong with National’s electricity market when power prices keep rising even as
demand falls, and no electricity company-sponsored report will trick them into thinking otherwise, Green Party energy
spokesperson Gareth Hughes said today.
Business New Zealand today released a report by Sapere Research Group, which advised on National's 2010 electricity
reforms. The report brushes over the past two decades of rapid electricity price rises and attacks the Greens-Labour NZ
Power plan, which would reduce power prices by $300 a year for every household by cutting the excessive profits of
electricity companies. The electricity companies are all members of Business New Zealand’s Major Companies Group.
“I’m not surprised that a report commissioned by the electricity companies’ lobby group says that power prices are
justified, but Kiwi families know better,” said Mr Hughes.
“Kiwi families know that our power bills are going up at twice the rate of inflation, even though the country’s power
demand is falling.
“New Zealanders know that something is broken in our electricity market when power prices have doubled in 15 years, even
though most of our power is produced at very low cost with hydrodams that were built decades ago with public money.
“Energy poverty is a crucial issue in our country. 41,000 families were disconnected for being unable to pay their power
bill last year. Many kiwi homes are too cold because heating them costs too much, which leads to ill-health among our
kids and elderly.
“The Greens’ NZ Power plan, along with Progressive Pricing, will cut household power bills by $300 a year. That will
make a massive difference to ordinary Kiwi families. The electricity companies’ report offers no solution.
“There is a lot of money at stake for the electricity companies and their lobbyists in defending the status quo. Their
continued attacks against change are predictable. But something has to change. Excessive electricity prices are a
deadweight on our economy, which costs us jobs, and a drain on strained family budgets that results in cold, underheated
houses.
“While the power companies are playing politics, the Greens are focused on a plan that will save families $300 a year
and create 5,000 jobs in our economy,” said Mr Hughes.
ENDS