Tuesday, December 7, 2010

Phil Goff and Electricity Prices

For those of you who watched TV 3 last night Phil Goff blamed the government for high electricity prices, and called it 'price gorging'

We've written about the high prices of electricity on more than one occasion. To blame it on the government is perhaps a little simplistic.  Certainly government action has increased the price of electricity, but the restrictions imposed by the last Labor government with medical customers in our mind is more of a reason for high prices than Goff's alleged 'price gorging'.

It wasn't that long ago when people were complaining that the Power Companies were not producing an adequate return for the government.

The problem is more complex than certain politicians seem to want to believe.

Also we think that any regulation to lower power prices is likely to be futile.  Electricity companies are very good at raising prices, so in order to lower your power bill we recommend purchasing a Power Panda.

Mercury Energy already has a fee for paying the power bill at New Zealand Post.  If the government legislates to reduce electricity prices I'm sure we'll see fees for paying power bills with credit cards, processing fees, and more 'one-off' fees that more than compensate for the reduction in revenue.

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