No Taxpayer Subsidies On Lower Electricity Prices

  • Max Bradford
Enterprise and Commerce

Enterprise and Commerce Minister Max Bradford says the Electricity Supply Association (ESANZ) is being totally irresponsible by asserting that taxpayers are subsidising lower electricity prices.

Mr Bradford was responding to claims by the Association's executive director John Belgrave that the lower electricity prices being offered by Contact Energy and First Electric "are being subsidised by the taxpayer".

"This is just another example of the half truths being put out by the power companies which are finding that competition is rather harder than they thought," Mr Bradford said.

"There is no subsidy from the taxpayer. Nor is there any cross-subsidy from guaranteed monopoly businesses - which ESANZ companies used to use to subsidise their prices.

"The simple fact is that consumers are getting lower prices because of the new competition."