MEDIA RELEASE

19/10/2005

Grey Power Appeal to the Minister of Energy

Grey Power national president, Graham Stairmand has today voiced concerns regarding the Electricity companies. "It is not surprising that Meridian Energy is poised to post a profit of $218 million as it treats its customers as cash cows , raising the price to consumers without any justification . All the customer receives is a letter advising that the price will be increased on a certain date.

There is no redress for the consumer as the Minister of Energy and the Electricity Commission have stoically refused to support the formation of a consumer advocacy group which could contest these price rises .

However Meridian is not alone in its price gouging attitude as the other three power companies Mighty River , Genesis and Transpower will contribute to a combined $550 million profit

That these companies can make such large profits clearly illustrates that there is no effective competition in the wholesale and retail markets and in fact it is entirely possible that with the system of pricing that the market can be manipulated to the benefit of the suppliers.

It is hoped that unlike previous Ministers the new Minister of Energy will take some positive action to curb these record profits which are severely affecting all households."

ENDS

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