Many Consumers Are Paying Less, Says Bradford

An analysis of First Electric power prices show many consumers are paying less than they were before the electricity reforms were announced a year ago, Enterprise and Commerce Minister Max Bradford said today.

Mr Bradford released a comparison of First Electric power prices with some other electricity retail companies.

He said it 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 announcedlast 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.

In Taupo, First Electric customers, who consumed 8000KwH annually, were currently paying 10.6% less than those who were signed with Trustpower. Taupo First Electric customers were also paying 9.2% less than they would have a year ago, compared to people signed up to Trustpower's "Friends" scheme.

Taupo First Electric customer savings compared with a year ago were even higher when compared to Trustpower customers who were not members of Trustpower's "Friends" scheme.

In Rotorua First Electric customers currently paid 17% less than those who were signed up to Trustpower and 9% less than those who were signed up to Trustpower's "Friends" scheme.

All Rotorua First Electric customers were paying between 9% and 10.4% less than they had paid before the power reforms began.