Media Release

NIWA say we are having a much warmer winter in 2009. The average August temperature for New Zealand was 1.7 C warmer. Yet some people cannot pay their electricity heating bills!

Are the Government-owned companies like Mighty River still gouging their customers, as reported in the recent published report: which the Electricity Commission is rubbishing in the 2009 Electricity Review documents issued by the Minister of Energy and Resources?

Some impact estimation on the Mighty River dividend declared on 3 September 2009 to its Government share holder:

Estimated total Gross profit is approximately = $268 million

Declared Government Shareholder dividend = $159.6 million

Estimated Income Tax @ 33% paid to Government on Gross profit

Income Tax = $80 million

Estimated GST paid to the Government on Gross profit

GST on Gross profit = $30 million

This rough calculation could be wrong by several million but serves to show the Government has taken a huge amount of money from Mighty River Electricity clients. The New Zealand electricity supply system companyies, both private and Government, are taking unreasonable amounts of profit on the operation of a small, by world standards, electricity system.

In closing the report said Mighty River had 30,000 new clients and increased its profit by $48.7 Million. This equates to $1,600 for each customer toward that profit increase. Not bad. In any other company not Government owned, this would be called ripping the suckers off.

Will Parliament fix this rip off? We think not. What do you think?

Source and Comment

Broadcast: TVNZ teletext 3/9/09 – source data: One News. Comment by Grey Power.

ENDS

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