New Zealanders have recently been hit by electricity price rises of up to 29%. The opposition Alliance says these rises are a consequence of the corporatisation and privatisation of power companies.

Alliance energy spokesperson and deputy leader Jeanette Fitzsimons said on May 8 that the policies were put in place by the 1992 Energy Companies Act, planned earlier by the Labour government and passed by the Nationals.

"That act corporatised power companies, required them to make a profit, forced them to compete ... and required them to charge separately for the use of their lines", Fitzsimons said.

"The government has deliberately unleashed a pack of wild dogs into a fenced paddock. No-one should be surprised that they are now eating the lambs.

"The issue is not whether prices have gone up or down overall, but who is paying more, for what and to whom. Domestic users are paying too much because they are the only captive market, and companies are forced to use them to subsidise competitive business consumers."

There are harmful environmental consequences as well, Fitzsimons said. "There is no reward for conserving power or increasing energy efficiency because fixed charges have to be paid regardless."

Fitzsimons charged that power companies are "over-valuing their lines and demanding a high return on that notional capital.

"Power consumers' money is being eaten up in share market battles designed to reduce competition down to about six companies.

"To get the wild dogs under control, the Alliance would prohibit fixed line charges, remove the spurious competition between the two halves of ECNZ and introduce progressive pricing, where a basic amount of power is affordable but people pay for wasting it."

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