Energy Minister criticises hike in directors' fees

Energy Minister David Parker says Contact Energy's move to double its directors fees would be an extraordinary move at a time when most people are having to tighten their belts.

"Directors of state-owned energy companies are paid less than half the amount proposed by Contact, as are the directors of most other companies listed on the New Zealand Stock Exchange."

David Parker said Contact Energy's move was especially hard to justify in the current economic climate, and at a time when Contact was announcing retail prices rises of 10 percent.

"The government has already said it is concerned about recent hikes in Contact's retail electricity prices and we remain concerned about whether the electricity market is operating effectively to constrain excessive prices and excessive cost structures.

"I look forward to reports due soon from the Commerce Commission and the Electricity Commission, into the adequacy of competition in electricity markets," David Parker concluded.