High power prices cost jobs and hit industry

Rising power prices are loading more costs on to industry and that will lead to even more jobs losses and hinder the expansion of industries we need to grow, says Labour’s Finance spokesperson David Parker.

“Customers for Contact Energy, Genesis, Nova Energy and Powershop will all see their bills rise in April. Those costs hurt business.

“Hundreds of job losses have been announced already this year. A rise in power prices imposes big costs for manufacturing and commercial business. These price rises are damaging.

“In the USA there is an energy surplus and prices are going down. That’s how it should be. In New Zealand it’s the opposite. We have an energy surplus and flat demand but prices are rising. Something is seriously wrong here.

“Increasing transmission charges are no excuse.  Prices are being raised to cover excessive salaries and unrealistic profit expectations. The New Zealand market is clearly not competitive.

“The sale of our state-owned electricity companies will likely see price rises as shown by Contact Energy.

“At select committee yesterday Genesis chair Jenny Shipley boasted about the company’s profits. But she didn’t say that her company was putting prices up the next day. The industry needs to be more open and transparent,” says David Parker.