Why power prices matter

News that the CEO of Contact Energy is now earning $1.7 million a year, or $33,000 a week, has shocked many New Zealanders and reinforces the urgent need for Labour’s NZ Power policy, Labour’s Finance spokesperson David Parker says.
“Currently power companies are allowed to charge excessive prices by pricing all electricity at the price paid for the most expensive electricity produced (often gas fired).
“Under Labour’s NZ Power consumers pay the average, rather than the highest, cost of generation. This saves hundreds of dollars a year for the average household and about 5 per cent for commercial users.
“This is only fair. Sixty per cent of NZ’s electricity comes from hydro, which is the cheapest electricity to produce in the world. It’s fuelled by the energy which comes from our public rivers. At present the public gets little benefit from this.
“I have been challenged by the business community on how I justify Labour’s policy to drop power prices.
“It’s easy.  People are cold. A couple of weeks ago I was in Wanganui. It was a cold day. I dropped into a suburban library. I was told many of the people who come in do so to get warm. They stay for hours on cold days because they cannot afford to heat their homes.

Continue reading

Advertisements


Grey Power deal shows need for NZ Power

Pulse Energy’s deal with Grey Power for discounts for its members shows why New Zealand needs Labour’s policy to bring down power prices, Labour’s Finance spokesperson David Parker says.

“The agreement between Pulse and Grey Power for low cost power for senior citizens shows the electricity industry recognises that prices are too high for many New Zealanders.

“Some senior citizens are forced to limit their use of appliances such as heaters during winter because power prices are higher than they should be. This is a tragedy which puts their health at risk.
Continue reading


Rio Tinto’s power bill cut. Kiwis’ bills keep rising

Meridian’s Government-sponsored Tiwai Point deal has given Rio Tinto a cut of tens of millions of dollars in electricity prices every year, while power bills keep increasing for Kiwi families, says Labour’s Finance spokesperson David Parker.

“Kiwi families know they are being overcharged for their electricity. Seeing Rio Tinto get a power bill cut of tens of millions of dollars a year while their bills go up rubs salt into the wound.

“The difference between residential and industrial prices is already the second highest in the developed world, and it just got even larger.
Continue reading


Nats’ ETS claims on power misleading again

John Key is wrong yet again with his claims that Labour’s power policy will see a rise in power bills due to the emissions trading scheme – the truth is in future the ETS will have less of an impact on power bills than it does now, says Labour’s Finance spokesperson David Parker.

“Under Labour’s power plan, all Kiwis will see their power bills reduced by $230 – $330 a year. Under National they will go up. National knows that matters to New Zealanders and is desperate to undermine the policy with a series of misrepresentations.

“Under Labour’s proposed changes generators will be paid for their actual costs. The ETS will only apply to electricity production that actually generates carbon, when 75 per cent of production is low carbon. Currently the carbon price impacts on other electricity generation.
Continue reading