Stable power prices intended

Press, 28 May 1983, Page 2

Stable power prices intended

PA Wellington The Government wanted electricity prices to remain relatively stable, said the Minister of Energy, Mr Birch, yesterday. He said he was concerned that the price of electricity did not show a marked increase which would contribute to inflation. “The’whole intent of the wage-price freeze is to lower inflation.”

He was reacting to what he called “alarmist” claims by the president of the Electrical Supply Authorities Association, Mr Innes Kerr-Taylor, about the possibility of increases in the prices of the Government’s

bulk electricity. Mr Kerr-Taylor said these might be necessary to allow electricity prices to catch up because the price freeze had stopped bulk tariff increases for 20 months. He also said that big increases in the bulk tariff might be necessary to compensate the electricity division for the high cost of producing thermal electricity this winter. Mr Birch said that in spite of the fact that Government charges were not bound by the price freeze, the Government had chosen not to increase the tariff during the freeze.