Labour on power prices

David Shearer has said:

David Shearer is today signalling Labour’s intention to make changes to the electricity sector to stem the relentless rise in power bills and to ease future pressure on prices from foreign investors looking to boost profits at the expense of consumers.

“Over the past 15 years, the annual average household power bill has gone up by almost $770, even after inflation is taken out. Prices in New Zealand are rising faster than in our major competitor countries.

Indeed power prices have gone up a lot over 15 years. When Labour were last in office they took $3.1 billi on in dividends from state owned power companies – despite massive surpluses.

Also Labour seem to not be mentioning that their ETS policy is to double the impact on power prices of the ETS, which will push prices higher.

The history of electricity cost increases in NZ, according to Stats NZ is:

  • 4th Labour Govt – 98.7% or 16.4% a year
  • 4th National Govt – 47.5% or 5.3% a year
  • 5th Labour Govt – 63.7% or 7.1% a year
  • 5th National Govt – 16.2% or 4.1% a year

So the average increases since 2008 are historically low, and the two periods of massive increases both occurred under Labour Governments.

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