Projected higher electricity prices coupled with fat winter profits earned by power SOEs have prompted Auckland business lobbyist Michael Barnett to denounce the state of the power industry.
Mr Barnett, chief executive of the Auckland Regional Chamber of Commerce and Industry, says State Owned Enterprises Minister Mark Burton should put the interests of consumers first instead of defending the healthy profit performance of the electricity SOEs.
He says electricity demand has reduced with the arrival of warmer weather and generating has risen. This means prices should be going down.
"That state of affairs is unacceptable and suggests that something is seriously wrong in the electricity market."
The existence of four Government-owned power generators and a private company (Contact) means there is no proper competition, which is why prices have increased and stayed high, Mr Barnett says.
