Bradford Demolishes Wright

Enterprise and Commerce Minister Max Bradford today demolished claims by Alliance MP John Wright that the Power reforms had not resulted in lower prices for thousands of consumers.

Mr Wright made the claim in Parliament today, but was immediately dispatched by Mr Bradford, who highlighted the fact that in Mr Wright's own area lines charges had come down.

Mr Bradford held aloft a headline from the North Canterbury News which read: "Cheaper Power Promised as Line Charges Reduced".

"If you are a First Electric customer you are paying less for your power now, after the recent price increases, than before the reforms came into effect "Critics and doomsday merchants don't want to recognise that the reforms are beginning to work.

"A growing number of power companies are acknowledging the reforms will lead to lower prices over time, as well as companies such as utilities investor Infratil," Mr Bradford said.

Mr Bradford again pointed to an analysis of First Electric power prices which showed many consumers are paying less than they were before the electricity reforms were announced a year ago.

He also released a letter from a retired Upper Hutt man as an example of the price falls being experienced by consumers.

Mr Bradford said the analysis showed very clearly that, despite all the rhetoric and First Electric price increases announced last week, consumers were still better off in areas where First Electric competed than they were before the reforms were announced last year.

First Electric supplies customers in many major centres and intends to compete throughout New Zealand. Other retailers have also indicated they will extend their services to other regions and provide greater competition over time.

"First Electric prices are still below pre-reform levels. My advice to consumers is to look at your power bills and shop around. Before the power reforms came in none of us had any chioice," Mr Bradford said.

The Analysis of First Electric prices showed that Auckland First Electric customers who consumed 8000KwH of power annually would be charged 12.6% less than if they obtained power from Mercury Energy, even after First Electric's recently announced increases.

The same First Electric customers were also paying 12.6% less than they would have been before the power reforms.

In north Wellington First Electric customers were paying 11.1% less than TransAlta customers and 13.9% less than before the reforms. In south Wellington First Electric customers were currently paying 11.1% less than TransAlta customers and 8.6% less than they paid before the reforms were announced a year ago.

In Christchurch First Electric customers, who consumed 9000KwH annually, were paying 13.8% less now and 8.4% lessthan Southpower had charged before the power reforms.