KEY POINTS:
Prime Minister John Key has called on Genesis Energy to review a decision to raise power prices in Auckland by about 9 per cent.
The state-owned electricity supplier is notifying 76,000 householders in the North Shore and west Auckland of rises between 8.8 per cent and 9.2 per cent from January 18.
Genesis also recently announced price rises for Wellington customers.
Genesis says the rises reflect increased costs from line companies and it would lose money if it did not increase prices.
The news comes a few days after Reserve Bank Governor Alan Bollard said price restraint was needed to help the economy recover. He said he hoped the electricity industry "does not take advantage of its market position and keep increasing rates".
But Mr Key today said he was surprised by the Genesis move and he urged the company to reconsider.
"I think they should go out there and review that decision because a 9 per cent increase is an enormous amount when we are trying to get power prices down," he said on TVNZ's Breakfast programme.
"(It) is going against the spirit of what we are trying to achieve here, which is if we can take pressure off inflation Alan Bollard can cut rates."
Energy Minister Gerry Brownlee last week called Genesis representatives into his office to get an explanation.
He was told a range of issues from excess demand and network constraints forced the rise.
Reports from the Commerce Commission and Electricity Commission on the electricity market are being put together, which Mr Brownlee said he was looking forward to seeing.
Consumer New Zealand chief executive Sue Chetwin said consumers should look closely for the best electricity price they can get.
- NZPA
