Shocking electricity rip off continues

Alliance Party media release FOR IMMEDIATE RELEASE Friday 22 May 2009

The Alliance Party says electricity generators have been given a license to print money as freezing winter weather pushes up peoples power bills.

On Thursday 21 May the Commerce Commission confirmed that New Zealand's four main electricity generators were manipulating production to make huge profits at the expense of families and businesses.

The Commerce Commission also say that this price gouging is not illegal – a fact which should concern us all, says Alliance Energy Spokesperson Ian Tinkler.

Mr Tinkler says electricity generation should be about generating warm homes, not generating profits.

He says New Zealanders have been left out in the cold because of an unfair system encouraged by both the National and Labour governments.

"Since National removed electricity control away from communities and the families who live in them in the 1990s, a cartel of electricity companies have controlled prices."

Mr Tinkler says new entrants to the market are soon bought up by the companies in the cartel.

"Three of these companies are state owned enterprises, these are government owned but they are not operated in the interests of ordinary Kiwis. The big power players have generated themselves a cosy arrangement at the expense of the public."

He says power stations were originally built in order to increase our standard of living.

"Affordable power improves our quality of life in two ways. First it allow people to keep warm, cook, have light and run appliances without excessive cost, leaving more money for other essentials. Secondly it allows businesses to be more productive. This allows more jobs and higher wages."

The Alliance Party says by grabbing excessive profits, the electricity industry is making us all worse off.

Mr Tinkler says New Zealanders need control of electricity as the free market has been a failure in that industry.

"The Alliance says electricity generation is the responsibility of central government and local supply should be controlled by local communities."

ENDS

© Scoop Media