Prime Minister John Key is backing Energy Minister Gerry
Brownlee's call for power companies to hold off on any more
price increases.
After a damning Commerce Commission report said consumers had
been charged $4.3 billion more than they would have been in a
competitive market, Mr Brownlee had a warning for the
companies.
"I'm saying it would be an audacious act on the part of any
power company to raise electricity prices while they've got
this sort of allegation hanging out there," Mr Brownlee said.
Mr Key was asked at his post-cabinet press conference today
whether he agreed with that.
"My preference would be that they listen to the minister. I
don't think he made his comments lightly," Mr Key said.
The report said the big four generator-retailers didn't break
the law but used their market muscle to maximise profits,
hiking prices 72 percent between 2000 and 2008 while
inflation went up only 29 percent.
Mr Key said it was a complex report and needed to be put in
perspective.
"That was based on a perfect pricing scenario and no market
is perfect. Certainly, the electricity market in New Zealand
is far from perfect," he said.
Mr Key said a review ordered by Mr Brownlee was taking place
and he thought power companies should hold off on price rises
until the future of the sector was known.
Bookmark/Search this post with:
