Mighty River – Mighty Profits – Mighty hard to swallow

Mighty River Power’s profit increase of 84 per cent is simply outrageous, says Labour’s Energy spokesperson David Shearer.

“Demand for electricity is flat or declining yet the company has made enormous profits. It is the latest power company to celebrate record profits off the backs of New Zealand households.

“Power prices went up 4.2 per cent in the last quarter – in just a three month period – according to the Consumer Price Index.

“In the figures released today, MRP’s net profit for 2014 was $212 million. That’s a huge jump upwards from 2013 when it was $115 million.

“What has changed in the past year is the Government has privatised our power companies. Now a small number of investors wanting to maximise their profits are demanding power companies extract every dollar out of Kiwis.

“I’ve had hundreds of people get in touch with me telling me their stories of how they are struggling to heat their houses this winter and how their power prices have rocketed.

“The current system might be working for the government’s friends and a small group of elites, but it’s failing hardworking New Zealand households.

“The Government thinks nothing is wrong. No doubt the Electricity Authority will say this is fine, it’s a competitive market. And a small number of investors will be rejoicing.

“On Monday Contact Energy celebrated a 17 per cent increase in profits. Meridian made $230 million in profits.

“Labour will reform our electricity market to save consumers hundreds of dollars a year and ensure future price hikes are slowed,” David Shearer says.

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