MEDIA RELEASE
Commerce Commission OKs electricity price rises
“This will hit hard those least able to afford increases in power; those on fixed incomes, those living on or below the poverty line.”
1
November 2011
The Commerce Commission has allowed Transpower to increase revenue by 21.7% over the next three years to fund much needed infrastructure.
"It appears that it is now common policy to fund large capital works from cashflow - not over the life of the asset - but during the much shorter period of the time taken to build the things," says The Mission's chief executive Laura Black
"This is a significant departure from common accounting practice, and will hit hard those least able to afford increases in power; those on fixed incomes, those living on or below the poverty line, those who are already experiencing high rates of 'real' inflation.
"In the South where heating is a necessity of life, that means children, the elderly, those with disabilities, and low and middle income families.
"As with the ACC levy increases, it seems that some extraordinary accounting choices are being used to squeeze further those who are already between a rock and a hard place. Just this week, the NZ Institute reported that New Zealand's household wealth is 24th out of 34 OECD countries: we are in the bottom third for household's ability to afford new costs.
While The Mission strongly supports the development of
environmentally sound, future-proofed, electricity generation; we
call for it to be done through sensible means that show compassion
for those at the bottom."
The Commerce Commission
> READ the Commerce Commission's media release
"...While we anticipate higher prices for consumers as these costs are passed on, we think we have got that balance right,” said Dr Mark Berry, Chair of the Commerce Commission..."