Media release 13 August 2009

Excessive power prices a New Zealand tragedy – Age Concern

The Market Review finding that power price rises have been 'excessive' confirms the tragedy of the past few winters, in which older people have gone cold and hungry.

"A flawed electricity sector has delivered neither a rational power market nor continuity of supply," Age Concern New Zealand's national President Liz Baxendine says.

Age Concern welcomes the Ministerial Electricity Market Review report and its recommendations for improving security of supply and compensating affected consumers, but remains unconvinced by the moves to increase competition.

"Flaws in the electricity market have left domestic consumers defenceless against excessive electricity charges, yet the proposed changes leave that market almost unchanged," Liz Baxendine says.

"Nowhere does it address the fact that industrial electricity charges have barely risen, in real terms, for decades.

"Energy Minister Gerry Brownlee appears keener on the recommendations for rearranging elements of the existing system than dealing with power prices.

"I challenge the Minister to explain how he's going to get electricity prices under control."

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.

Age Concern wants Gerry Brownlee to undo some of the harm that has been done. This should be achieved by:

• Requiring that electricity SOEs make annual contributions to the home insulation subsidies.

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

"Age Concern welcomes the Minister's call for feedback. We will be actively representing the interests of older New Zealanders throughout the submission process," Liz Baxendine says.

Ends

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

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