GREY POWER MEDIA RELEASE

With the call to State owned electricity companies to hold power pricer increases, one wonders what is going on between the Governor of the Reserve Bank and his new political masters.

Up to the 'Roger Douglas' inspired Labour Governemtn, NZ's electricity industry ran for the benefit of the the consumer. After that, it has been run for the benefit of shareholders, of which the Government is the major one.

The recent fuss over the shortfall in the ACC accounts, plus Treasury's recommendation for a capital gains tax, would indicate that Government will be financially pressed to pay for the promised tax cuts.

Recently announced price increases indicate that the Government is already looking at the electricity sector to increase revenue. We await the next announcement from Meridian and Mighty River.

If any notice is taken of the admonitions by Alan Bollard, he will be seen as a knight in shining armour by the long suffering electricity consumers. However, before the ink is dry on his appeal, Genesis have typically defied it. As usual, their reasons do not hold water as there is no way line company costs could be responsible for a 9% increase.

ENDS

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