The latest profit announcement from Genesis Energy shows that the power company was sold for a song to the detriment of the country’s power consumers, says Labour’s Energy spokesperson David Shearer.
“A net profit of $ 49.2 million follows hard on the heels of huge profits by Mighty River Power and Meridian. All of this is happening against the background of power prices rising by 4.2 per cent in the last quarter.
“While the Genesis profit is down on last years but it is well above what was forecast at the time of sale showing that the company is a golden goose with an increase in the final dividend for investors.
“The current system might be working for the government’s friends and a small group of elites, but it’s failing hardworking New Zealand households.
“The Government is sticking to its mantra that nothing is wrong. No doubt the Electricity Authority will again say this is fine but Kiwis are struggling to heat their houses this winter and they know their power prices have rocketed.
“New Zealand electricity should be amongst the cheapest in the world with 60% of our power generated by free water flowing through dams that were built and paid off over previous generations.
Instead NZ prices have risen more steeply than just about every other OECD country.
“As we made clear yesterday, Labour will reform our electricity market to save consumers hundreds of dollars a year and ensure future price hikes are slowed,” David Shearer says.