LOWER ELECTRICITY PRICES

Retail customers will be the big winners from the Government's plan for more competition in electricity generation, State Owned Enterprises Minister Tony Ryall said today.

"These changes are all about bringing power prices down for New Zealand families. The power companies have had their chance to pass on lower prices but they've failed. Now is the time for a fresh approach," Mr Ryall said.

"Consumers are paying dearly for ECNZ dominance which lets it set power prices. With more competition, prices will come down. This will reduce the value of ECNZ to the Government, but that's a price worth paying to give consumers lower prices.

"We want the value - and profits - lost through the split of ECNZ passed onto local customers. We don't want that value captured by the middlemen. They've done enough of that already. In the past few years wholesale prices have dropped by 16%. Yet our power bills keep going up. This has to stop."

Mr Ryall said the Government's plans must indeed be sound. "Look who's complaining.... the monopoly companies and their monopoly trusts.

"Power companies like competition as much as the Warriors like Aussie referees! Our changes will put customers first."