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Source: ONE News -
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Power company Genesis is putting up prices just days after the Reserve Bank Governor called for restraint to help turn the economy around.
The state-owned electricity supplier will increase prices throughout West Auckland and the North Shore starting on January 18.
About 76,000 customers will see increases ranging from 8.8% to 9.2% - for some the rise is nearly double the rate of inflation.
Spokesman Richard Gordon says the hike is the result of a pricing change previously scheduled for the area and an increase in various costs
He says even after the increases, Genesis will still have lower rates than other electricity retailers operating in the affected regions.
But like most Genesis customers, Aucklander Carol Redgrove says she is fairly upset over the price hikes.
"I often do hand washing rather than use the washing machine, I use cold water washes for sheets and towels," she says.
She says the increase will set her back at least another $20 a month.
"What else can one do to conserve and the price is still going up...I think it's getting extremely expensive," she says.
Ironically, the increase came the same week that Reserve Bank Governor Dr Alan Bollard made a plea for electricity providers to cut their costs. He has stressed that he must see inflationary pressures reduce across the economy if he is to continue cutting interest rates.
The government has expressed concern at Genesis's price hike, and Energy Minister Gerry Brownlee has been in dialogue with the company about its pricing scheme.
Gordon says Genesis had deferred passing on price increases for as long as they can.
"If we didn't put up our prices for this particular sector, we'd be selling our electricity at a loss," says Gordon.
He says it's not a swipe at Bollard, and that Genesis had planned the increase months ago.
Meanwhile, Brownlee has taken a swipe at Labour over the news.
"I've got sympathy for all of the electricity users in New Zealand, who've seen retail prices rise by nearly 80% since 2000. We're on a very steep incline and we need to get off it fast," says Brownlee.
The new energy minister has called in Genesis managers for an explanation.
