Greedy Genesis Energy increasing power bills by 30% – time to nationalise electricity
Is it fair that prices rise as power companies bank profits?
Consumer NZ is asking how it is fair that power prices are rising at the same time as power companies are reporting large profits.
Meridian Energy on Wednesday reported a $226 million half-year profit. Earlier, Mercury had recorded a net profit of $20m in the year six months to December, and Genesis said its half year profit was $95m.
But at the same time, many customers have been receiving emails in recent weeks telling them that the cost of their power is set to rise this year.
After an increase of 12 percent last year, Consumer NZ has estimated that it is likely power prices will rise about 5 percent this year, largely driven by increases in lines charges.
A Consumer survey found that almost half of respondents said the price of their latest power bill was not fair and 46 percent of New Zealanders through gentailers’ profit levels were not justified.
An earlier survey found that almost one in five people cut back on food or other essentials to pay their power bills last winter and 21 percent went to bed earlier to keep warm.
Chief executive Jon Duffy said it appeared the gentailers’ social licence was starting to fade.
He said consumers saw companies talking “year after year” about needing profits to be able to invest in generation but had not seen that generation happen in a meaningful way for households.
“We don’t see that new generation come online or at least in the quantities that we need to lower prices. Consumer patience is running out with that.”
He said much of the new generation was tied to commercial contracts so households did not benefit.
The price of generation had come down on the back of a good year for hydro power, he said, but retail prices did not change. “That’s just printing money.
“The wholesale market is pricing in the potential dry year risk of there not being enough water in the lakes and there not being enough gas in the gas fields and that means they have to price in their risk which pushes prices up… I think people would have more patience if you saw a flood of renewable generation coming on to the market but we’re just not seeing that we’ve seen piecemeal incremental projects.”
He said in an advanced and industrialised economy the ability to pay for power should not be the issue it is in New Zealand.
RNZ
This as Greedy Genesis Energy increasing power bills by 30%…
Genesis Energy a ‘fair proposition’ despite some customers bills increasing by 30%
… NZs capitalism is a rigged game for the monopolies, oligopolies and duopolies.
Our failed free market experiment in Electricity is a glaring example of the broken neoliberal management model.
Major generators like Mercury Energy, Contact Energy, Genesis Energy, and Meridian Energy prioritise shareholder returns over long-term investment into renewables which this reduces willingness to invest heavily in long-lead-time infrastructure, especially around renewables, storage, and grid upgrades.
The Gas scam the Government has agreed to will benefit the Gas industry and Fonteera, it won’t do anything other than add a new tax to consumers!
Despite having multiple retailers, most consumers are served by the “big five” retailers (including those linked to major generators), meaning effective competition is a mirage not a reality!
I’m not look for socialism from this Government, just basic regulated capitalism!
- State ownership would prioritise security of supply, renewables expansion, and decarbonisation over profit!
- Long-term projects (pumped hydro, grid modernisation) can be funded regardless of short-term return.
- A publicly owned system could integrate climate targets directly into investment decisions without needing market signals.
- Public networks can design grid access rules to encourage all renewable developers, not just incumbents, reducing barriers to new entrants.
- Public ownership means policy choices reflect electorate priorities, not shareholder pressure.
Look, the future is total electrification of your economy, it is too important an issue to leave to the market, it’s a national security issue AND an environmental issue AND a consumer issue AND an economic edge issue.
We have 100% renewables in NZ and if we invested, we could get to 100% electrification.
This is too important to leave to the market!
Let’s not forget that between 2012-2014 John Key sold our electricity ownership model, so it’s now more about the utter and absolute greed of the energy company shareholders! Again, when is ‘Enough’ ENOUGH?? The same struggling group is still being targeted by those who have most of the public cake! This CoC plays right into their hands as a bribe for votes, while the ‘have nots’ continue to foot the ever-increasing bills! How in the hell do people sleep at night knowing that their incessant greed is causing such mayhem among ordinary hard-working folk? There are people out there just holding it together while the ‘haves’ live a life of mindless luxury. CoC there is nothing Christianly or kind about your whole sick, insatiable, selfish, attitudes.
Well wouldn’t it be good if the parliamentary left campaigned on a core issue like nationalization of electricity. But instead Labour is promising to force companies to publish “pay gap” data. Sadly the contemporary left isn’t going to fix electricity, they’re too busy with their identity politics bullshit.
The Westminster system wasn’t designed to regulate capitalism. It was designed to entrench it in the hands of the wealthy and powerful by legislating control of resources like energy, water and land for them.
The left right argument and fight for your vote is only meant to distract from that.
Any vote for either is a vote for the status quo. But by all means, keep doing the same thing expecting a different result.