Grey Power Statement on Asset Sales

From: Allen Davies- Chair Grey Power Energy Portfolio

Grey Power calls on Government to slow down the asset sales process, and engage properly with household consumers to find practical solutions to power price rises, cold houses, and long-term energy sustainability.

All householders, particularly those on fixed or low incomes, will be prejudiced by asset sales because privatisation will lock in today’s industry-friendly pricing. Last year prices rose only a little, but as soon as the asset sales bill was passed we saw the highest-ever price increase in a single quarter – a 5% price rise averaged nationwide.

This has hit just in time for winter. Many of our members are turning heaters off, going to bed early, or cutting down on healthy food or medical expenses. Their health is suffering. Cold houses kill people.

Today’s regulation actively promotes wealth transfers to big businesses at the expense of small consumers. Price rises are like a tax but worse, because much of the profit would go to the private sector instead of cutting the national deficit or funding healthy homes programmes. Government has removed people’s rights to take their concerns about power prices to the Minister.

Privatisation means not only higher prices, but suppression of energy efficiency and household energy options that reduce electricity sales and profits.

Government must halt asset sales until today’s free-market pricing is regulated to ensure the interests of small consumers are protected.

Grey Power National Internet Site: www.greypower.co.nz

ENDS

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