Electricity demand down – prices up

new-zealand-labour-party

Fri Jun 20 2014 12:00:00 GMT+1200 (New Zealand Standard Time)

Electricity demand down – prices up

Friday, 20 June 2014, 2:29 pm
Press Release: New Zealand Labour Party

David
SHEARER

Energy Spokesperson
20 June 2014 MEDIA STATEMENT

Electricity demand down – prices up

The electricity market is broken and not delivering to Kiwis, said Labour’s Energy Spokesperson, David Shearer.

“The latest government figures show that demand for electricity is the lowest it’s been since 2009. Yet in that time prices have risen 19% – or more than four times the rate of inflation.

“If the market was functioning normally energy companies would compete harder for customers and prices would fall.

“Energy Minister Bridges said just last year that ’if flat demand remained, you do have to go back to the fourth or fifth form economics. You do have the conditions for flat prices, and maybe even decreasing prices.’

“Well Minister, where are those decreasing prices? Perhaps you need to go back to your college text books and explain why Kiwis are paying for ever higher prices when demand is dropping.

“This government is out of touch with New Zealanders. People know their power prices are going up to further the profits of energy companies.

“The market is working for our newly privatised energy companies.

“Consumers are being stung for higher prices – and our privatised energy companies are enjoying large profits.

“Meanwhile overseas, where demand as fallen, consumers have been enjoying cheaper power. Labour will reform the electricity market so that it delivers for New Zealanders.

“It will save New Zealand families hundreds of dollars and curb these unjustified price rises.”

Link to Report http://www.med.govt.nz/sectors-industries/energy/energy-modelling/data/electricity

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