Mighty River to hold prices for 15 months

December 11th, 2013 at 11:00 am by David Farrar

Some have scaremongered that moving from an SOE to a mixed ownership model will increase . Well the Herald reports:

MightyRiverPower, the first state-owned power company to be partially privatised by the government this year, plans to keep the price it charges for electricity on hold until at least April 2015, but can’t guarantee transmission and distribution prices won’t rise. …

“However, there will likely be changes in customer pricing from April 1 due to variables over which we have no control that we pass through on our bills – such as transmission and distribution charges and any increases in metering costs due to regulatory requirements.”

So there will be no increase in the price for the actual power.

The way to keep power prices down is to increase competition, not destroy it as Labour/Greens propose. If you look at the Powerswitch website run by Consumer, there is a big difference between what companies charge.

  • In Auckland the most expensive average price is Mercury at $2,251. Mercury is owned by MRP and its prices are the same as when MRP was an SOE. The cheapest is Contact at $2,018. Contact is 1005 privately owned.
  • In Wellington the cheapest is Budgie at $2,012 (also owned by MRP) and most expensive is Energy Online at $2,269. Energy Online is owned by Genesis, which is an SOE.
  • In Canterbury Trustpower is $2,653 and Nova $2,044. Nova is owned by the 100% private Todd Corp. Trustpower is owned by Infratil and Tauranga Energy Consumer Trust.

 

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19 Responses to “Mighty River to hold prices for 15 months”

  1. flipper (3,268 comments) says:

    Oh dear.

    Another Norman / Cunners scheme blown from the water.

    Please Sir, may I have some more????

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  2. Cunningham (746 comments) says:

    I find it outrageous that Labour can claim power will go up under a MOM when they took massive dividends in their tenure (a time which power went up by a massive amount). And they were planning on increasing the dividends if they won during the last election to pay for their spending promises.

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  3. emmess (1,333 comments) says:

    Waiting for a socialist to to admit they were wrong……

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  4. peterwn (2,933 comments) says:

    Had a play with Powerswitch for Wellington City and Auckland (old AEPB area). With my profile and assuming online billing, Contact was cheapest in Auckland with Mercury just a bit more expensive (‘Budgie’ not offered). In Wellington ‘Budgie’ cheapest and Mercury online slightly more expensive. It seems to indicate usage profiles can make a dramatic difference. I think you could get a more accurate result if you work out your 12 monthly consumption, and enter that.

    Perhaps ‘traditional’ type Mercury tariffs (ie no online billing etc) in the old AEPB area are set at a high rate is because customers who cannot be bothered switching is a lucrative customer segment for MRP. These sorts of people want the Government to deliver cheaper electricity without the bother of calculating things and do a switch. Perhaps WINZ should require beneficiaries to log into Powerswitch from their kiosk terminals at least annually as a prerequisite to continuing benefits.

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  5. gordon_gekko (2 comments) says:

    Meridan have committed to no energy margin increases in its prospectus and Contact have also stated they won’t be increasing energy prices as well!

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  6. ross69 (3,637 comments) says:

    Consumers will be delighted to learn that, despite their power bills going up several times the rate of inflation, they’re not actually paying more for their power.

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  7. ross69 (3,637 comments) says:

    The way to keep power prices down is to increase competition, not destroy it as Labour/Greens propose.

    Obviously you’ve never heard of Pharmac which manages buy drugs and medicines cheaply…

    What does John Key say about the single buyer model?

    “We think Pharmac has been hugely successful. We think it makes money for New Zealand. It is the most cost efficient way of purchasing pharmaceuticals for New Zealanders and we’d take a fair bit of convincing that that wasn’t the right model.”

    Hmmm so he thinks it’s awesome.

    [DPF: the Pharmac comparison is moronic. Pharmac buys for the Govt, not all of NZ. It is a state purchasing agent, which is a million miles different to a compulsory purchaser for every individual, household and business in NZ]

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  8. peterwn (2,933 comments) says:

    Ross69 – “power bills going up several times the rate of inflation”

    Example please. Power prices have gone up no more than 20 – 50 % in real terms since the 1960′s. This is despite all the ‘easy’ hydro generation being picked off years ago and the politically motivated cross-subsidisation between domestic and commercial customers being removed.

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  9. peterwn (2,933 comments) says:

    ross69 – re Pharmac – While it may be a ‘single buyer’, it cannot (unlike the Labour/ Green ‘single buyer’ power policy) dictate to ‘Big Pharma’ how much it will pay for drugs. If it tried it, the Pharma companies will simply tell NZ to ‘get stuffed’. In the power company case, Labour/ Green policy also calls for mandatory dispatching of Power Companies’ generation. Pharmac cannot demand that an overseas drug company supply medicines on terms and price that Pharmac dictates. Pharmac is one of many buyers. An example of another combined buyer is HMO Kaiser-Permanente in USA, it would buy twice as much medicines as Pharmac (Kaiser has about 8 million Americans on its books).

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  10. freemark (324 comments) says:

    I think I’ve seen (Hue)Ross69 in other places. He won’t let reason, logic or even facts get in the way of his extreme envy complex regarding anyone successful – especially JK, who he seems to have a real hard on over..

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  11. srylands (301 comments) says:

    “Obviously you’ve never heard of Pharmac which manages buy drugs and medicines cheaply…”

    Ross we have done this before. NZ Power is nothing like Pharmac. Pharmac does not force international drug companies to sell any products to it. Pfizer has thousands, and in some cases millions of customers. Pharmac is one. Further, Pfizer can bypass Pharmac and sell directly to any New Zealander.

    Does that sound like NZ Power? No. Stop being stupid.

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  12. burt (7,085 comments) says:

    ross69

    Consumers will be delighted to learn that, despite their power bills going up several times the rate of inflation, they’re not actually paying more for their power.

    Profit from power was much higher under Labour than it has been under National. Lovers of big government and corruption defended it because it was revenue for government that allowed more government spending.

    Strangely … under National … the same lefties seem to wake up to the reality that high power profits hurt low earners… where was that thinking when it was Labour doing it ?

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  13. goldnkiwi (649 comments) says:

    And by the time the new shareholders make them their provider they will get a double bonus in a way.

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  14. OneTrack (1,957 comments) says:

    “Ross69 – “power bills going up several times the rate of inflation”

    Example please…”

    Between 2001 and 2008 the 100% government owned power companies were treated like cash cows by the government of the day, and power consumers were reamed. Maybe that is an example that Ross can use?

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  15. ross69 (3,637 comments) says:

    Pharmac buys for the Govt, not all of NZ

    That’s an awful lot of drugs and medicines for 120 MPs. :)

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  16. ross69 (3,637 comments) says:

    Profit from power was much higher under Labour than it has been under National

    In other words, power prices have skyrocketed and you don’t give a shit.

    But let’s get real, if Labour becomes the govt next year, it will have a mandate to implement electricity reforms. You won’t be able to complain. A mandate is a mandate.

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  17. chris (460 comments) says:

    But let’s get real, if Labour becomes the govt next year, it will have a mandate to implement electricity reforms. You won’t be able to complain. A mandate is a mandate.

    Sure, they’ll have a mandate along with their coalition partners. But we can still moan about what they plan to implement. Just like how you do an awful lot of moaning about the National Government who have a mandate with their coalition partners.

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  18. Johnboy (13,342 comments) says:

    Meanwhile, in Wainui. Erstwhile Capitalist Running Dog’s Tool, Johnboy is crying inconsolably that he paid $2.50 for the IPO!! :)

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  19. Johnboy (13,342 comments) says:

    He did get his $250 divvy though! :)

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