July 16, 2014 9:00am by David Farrar

Lowest power price increase since 2001

Simon Bridges announced:

New power price data released today shows the Government’s 2010 electricity reforms are making a real difference for consumers, says Energy and Resources Minister Simon Bridges.

“The sales data released by the Ministry of Business, Innovation and Employment for the year ending March 2014, shows the lowest annual price increase since 2001 at 2.3 per cent,” Mr Bridges says.

“Discounts and other benefits from retailers are becoming the new norm in an increasingly competitive electricity market and the new data captures what consumers have actually paid for their power, rather than the advertised price.”

In other words, competition helps keep prices from increasing greatly.

For the June quarter, there has been an increase of 2.3 per cent. This was driven by a 6.7 per cent increase in lines charges — the component regulated by the Commerce Commission — as retailers passed on the significant investment costs associated with upgrading local networks.

The energy component — the part subject to competition — decreased by 0.7 per cent.

This is what makes Labour’s policy so bizarre. Rather than focus on better regulating the parts of the electricity sector which are monopolies, their policy seeks to destroy competition and the market among generators.