An interesting analysis of the Electricity Industry by the Electricity Authority. I blogged yesterday on how price rises are faster than inflation, but lower than in previous years. This graph shows that the competitive market side is working well. The costs increases are on the sides that are price regulated. To be this demonstrates that Labour’s policy of getting rid of the competitive market in generation is absolutely the wrong thing to do.
The analysis shows that the competitive component of electricity prices were rising at an annual rate of 7.1% prior to the What’s My Number campaign, but since the campaign the annual rate has fallen to only 0.5%, which is well below the CPI inflation rate. So the focus should stay on better competition, rather than less competition.
I’ve just swapped power companies because my body corporate has signed up for an exclusive deal for power from a retailer. By bulk purchasing for the complex, we get around 2c a unit cheaper. It’s a good example of competition at work.