The record profits by two of New Zealand’s largest electricity companies will be a bitter pill for New Zealand households who are paying record amounts for their power, says Labour’s Energy spokesperson David Shearer.
“No doubt the Key government will be celebrating the record profits. Kiwi families won’t.
“These profits come at a time when electricity prices have risen 4.2 per cent in the latest quarter of the Consumer Price Index. That was when demand for electricity demand was actually falling.
“Over the past months electricity companies have been quick to blame lines companies for any price increases. Today’s results show they are doing very nicely, thanks.
“Today’s release of profit information from Contact and Meridian Energy shows where the money has being going. Contact enjoyed a 17.6 per cent increase in net profit at $234 million and Meridian a net profit of $229.8 million.
“Demand for more profit will continue to rise now that our energy companies have been privatised. Those profits will continue to be taken out of consumer’s pockets.
“Sadly, profits that once flowed to the government to fund our schools and hospitals now go to private investors after the government partially privatised our electricity companies.
“The Government has been happy to sit on their hands and let consumers continue to be overcharged. Labour will reform our electricity market to save consumers hundreds of dollars a year and ensure future price hikes are slowed.