Rt Hon Winston Peters
New Zealand First Leader
23 April 2012

ELECTRICITY DISCOUNTS FOR SUPERGOLD CARD HOLDERS

New Zealand First is asking the Government to include a 10 per cent winter power discount scheme for SuperGold Card holders in the Budget next month.

Rt Hon Winston Peters says a discount on winter electricity prices for SuperGold Card holders is the responsible thing to do in times of sharply increasing prices.

“We want the Government to tell the state-owned power companies to invoke the social responsibility clause in the SOE Act to enable this discount scheme to happen.”

The New Zealand First initiative – first announced in May last year – would operate during the cold winter months each year from May to October.

It would potentially benefit more than 590,000 SuperGold Card holders by about $100 on their cold weather bills.

The concession would be timely as all power companies are increasing their electricity prices.

Under the New Zealand First scheme, the cheaper electricity would be supplied by the three State Owned Enterprise-power generators - Might River Power, Meridian and Genesis.

Mr Peters says these power companies and the Commerce Commission act as a “price-fixing cartel” which sees domestic users pay more than their fair share.

“Domestic users are paying more for power than both commercial and industrial electricity users. This imbalance will only get worse if the government proceeds with its plan to sell off the power stations to foreign companies.

“New Zealand First thinks this is unfair.

“A 10 per cent discount for SuperGold Card users needs to be included in next month’s budget so the elderly aren’t left shivering during winter.

“It would cost the highly profitable state-owned power companies about $34 million a year but these companies would benefit from a larger customer base.

“The power companies can easily afford it and the changes can be enacted swiftly under existing legislation, or the Government can use new legislation already prepared by New Zealand First.”
Mr Peters says information about the proposal for inclusion in the budget has been sent to Prime Minister John Key, the SOE shareholding ministers Bill English and Tony Ryall and the Minister for Senior Citizens Jo Goodhew.
Mrs Goodhew is on record as admitting she could do a lot better over discounts for senior citizens. (Timaru Herald, 10 March, 2012)
‘One of my priorities is that it will be more beneficial to both the users and businesses. [We] have new targets for this year, somewhat challenging and far-reaching targets ... to certainly improve the number of discounts in provincial New Zealand.’
Mr Peters says her statement “gives us some optimism that Mrs Goodhew will support this initiative”.

New Zealand First has carried out considerable research on the issue of power prices and Mr Peters says the present pricing system is both unfair and unsustainable.

“Households are carrying industrial and commercial consumers on their backs. It is grossly unfair that domestic users are subsidising industrial consumers to the tune of about 145 per cent and commercial users by about 66 per cent.

“It is particularly unfair to senior citizens in cold climates. They helped build and pay for one of the most reliable and inexpensive electricity systems in the world but now they are at the mercy of the price fixing cartel.”

New Zealand First has carried out a detailed analysis of the situation and is very willing to help implement the discount policy.

“We are prepared to discuss this issue in some detail with the Government and we have already prepared legislation if the shareholding ministers will not direct the SOEs to fulfil their social obligations,” says Mr Peters.

New Zealand First introduced the SuperGold Card for superannuitants and veterans to access discounted services such as free off-peak travel on public transport.

ENDS

Attached: Letter to Prime Minister John Key John_KEY__Power_discount_letter.pdf
Letter to the Minister of Finance Minister_of_FINANCE__Power_discount_scheme.pdf
Letter to the Minister for State Owned Enterprises Minister_for_SOES__Power_discount_scheme.pdf
Letter to the Minister for Senior Citizens Minister_for__SENIOR_CITIZENS__Power_discount_scheme.pdf

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