David Shearer
Energy Spokesperson
16 July 2014
Bridges cannot argue with the CPI –electricity prices are up
Today’s CPI gives the lie to Simon Bridge’s claim that power prices only rose by 2.3 % in the last year. Labour’s Energy
spokesperson David Shearer says.
“Its official; the CPI index says power prices increased by 4.2% in the last quarter. This is the second highest
quarterly increase in electricity prices measured by the CPI index this century.
“The only other time it was higher was in June 2012 at 4.5%.
“The updated CPI shows, just how much the Government’s updated statistics downplay the increase in prices under their
new reporting system.
“Yesterday the Government was smugly boasting about a ‘small’ 2.3 per cent increase in power prices to March. What the
Energy Minister was not saying was that the increase is smaller because the Government has changed the way it calculates
electricity pricing. The CPI proves Mr Bridges was just prevaricating.
“Ironically the power prices in the CPI index also eclipse all the other increases in prices which sat at only 0.3% in
the last quarter.
“The tragedy is that too many New Zealanders are living in cold, damp houses because they cannot afford to put the
heater or the electric blanket on. Today’s CPI shows that the Government should be focussed on reducing Kiwi’s power
bills, not covering them up.
A Labour Government would take decisive action on power prices. Through NZ Power we will cut hundreds of dollars off an
average household power bill and help to slow future increases,” said David Shearer.
ENDS