Age Concern New Zealand Media Release
26 May 2009

Age Concern wants action on $4 billion electricity overcharge

Age Concern New Zealand's national President Liz Baxendine is asking Energy Minister Gerry Brownlee for action on energy poverty.

"It's time to use a portion of the windfall profits earned by state-owned energy companies to undo some of the harm that's been done," Liz Baxendine says.

"Domestic consumers have faced excessive electricity charges through manipulation of the wholesale electricity market, mostly by state-owned enterprises.

"Age Concern has daily contact with older people throughout the country. Too many are frightened to use heating but need warmth to maintain their health. Often the costs are passed on to the health system as older people need hospital treatment for respiratory and other winter-related illnesses.

"Energy poverty is a reality in New Zealand, especially for people on low or fixed incomes, living in older uninsulated houses, and with high energy needs.

"Given there is little prospect of repayment of the $4.3 billion overcharge of consumers over the past six years calculated by the Commerce Commission, we're seeking action to protect vulnerable consumers."

Age Concern wants Government to undertake a full investigation of electricity retail costs and prices.

In addition, Age Concern is calling on Gerry Brownlee to establish a new fund funded from SOE surpluses to undo some of the harm. This should be achieved by:

* Requiring that electricity SOEs make an annual contribution of part of their surpluses (e.g. two percent) to insulate homes for improved energy efficiency. Such an initiative would boost the economy and assist low-income and vulnerable people to have healthier, more sustainable homes.

* Urgently putting in place a programme of emergency payments and rebates to relieve energy poverty this winter for low income and vulnerable people.

"We consider these two measures will significantly help older people and look forward to the Minister's positive response," Liz Baxendine says.

Note: Age Concern New Zealand is a member of The Domestic Energy Users' Network, and fully supports its analysis and calls for action.

ENDS

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