Use power company profits to reduce winter power bills

Strong profit increases in the state-owned power companies should be returned to consumers to help with winter power bills, Progressive Wigram MP Jim Anderton says.

He says low income households could be given $200 toward winter heating costs and power companies would still contribute as much to the government than they did last year.

“$200 would mean some households had a month of relief from winter heating costs. For superannuitants, beneficiaries and people who have lost their jobs in the downturn, it would make a huge difference.”

Mighty River Power recorded a profit of $234 million in the last six months of last year.

“That on its own is enough for every household in New Zealand to get a cheque of nearly $200.

Genesis’ profit for the half year is up by 38 per cent, Transpower’s is up by over a quarter and Meridian is the most profitable of the lot.

“At the same time that the people’s own power companies are booming, the people who own them are heading for a winter when many will struggle to pay the bills. The government should help low income households out by returning some of the huge dividends,” Jim Anderton said.

According to Statistics New Zealand, there are about 1.4 million households. If half were eligible for a $200 winter power rebate, that would cost $140 million. $200 is the estimated winter power bill for a month for the lowest income half of households.

ENDS

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