Press Release

Power Overcharges Leave Grey Power Feeling Cold

It is timely to remind all electricity consumers that they have, and are paying over and over again, for their assets in high electricity prices. The Consumers previously owned the electricity industry by paying a capital levy of 25% of their electricity usage for future development. This levy was increased to 50% for the last 10 years before it was taken from the Consumers by the government in the early 1990s. The assets were then re-valued in the name of reform to justify the overly inflated prices charged to consumers.

The price of this service has increased by 72% in the last 6 few years whilst inflation has risen by only 29%. Competition was the tool we were told would keep prices down and keep them down.

The situation now is that the Generators, who are also the Retailers, have gouged in excess of $4 billion out of us under the pretext of having to provide for generation expansion. The government is allowing them to keep this money they have stolen from us because they say it is too difficult to work out how much individual consumers should receive. I’m sure that among the 80,000 odd members of Grey Power, there would be enough intellect to devise strategies for reimbursement and we would happily do it at no charge.

It is interesting to note that the Domestic consumers use only 33% of electricity sold but provide 44% of the revenue received by the suppliers. This clearly shows that the much vaunted privatisation of the industry does not work. It does not work in America so how can it in our small market place.

In December 2005, Roy Hemmingway the former Chair of the Electricity Commission, said “When you see every electricity company making record profits every year—in good times and bad—you have to wonder whether there is any downward pressure on prices”. He was replaced for this and other factual criticism.

ENDS

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