Trustpower, Lines Company Should Reveal Real Reason For Marlborough Price Hike

TrustPower cannot blame Government electricity reforms for power prices in Marlborough, Enterprise and Commerce Minister Max Bradford says.

Instead, consumers should be asking Marlborough Electric why it had not decreased line charges to reflect the fact that it no longer had the costs of maintaining meters and billing, Mr Bradford said.

"TrustPower has taken on these costs, but they should be offset by lower line charges from Marlborough Electric.

"Marlborough Electric is one of only a very few lines companies that have increased tariffs, having sold their metering and billing business.

"Instead of focusing on where the true problem lies, and fronting up to Marlborough consumers with the real reason why prices are to increase,Trustpower has continued its unjustified attack on the power reforms.

"This is unacceptable and I hope all consumers see through TrustPower's smokescreen," Mr Bradford said.

"In my own case, I have received a power increase in which the transmission and distribution charge levied by the lines company, Marlborough Electric, has gone up by 28.5%.

"There is absolutely no justification for such an increase and it certainly cannot be blamed on the reforms.

"TrustPower has to explain how it can justify an increase of between 7% and 10% for energy charges, when wholesale electricity prices have significantly fallen since the reforms started.

"This increase looks like an unholy alliance between the lines company and TrustPower to price gouge their customer base and blame it on the reforms, when they are the ones who should be explaining why prices are going up," Mr Bradford said.