N.I. power consumers being duped — claim

Press, 19 December 1984, Page 53

N.I. power consumers being duped — claim

PA New Plymouth North Island electricity consumers are being “duped” into paying more for their power than South Islanders, according to the New Plymouth City electricity department’s engin-eer-manager, Mr Bruce Priest. He told a City Council energy committee meeting that the reasons given for the price differential were not true. “We are being told there is economic justification for the differential — but there is no such justification,” he said. Mr Priest’s comments were prompted by the recent announcement that New Zealand Electricity Division increases in bulk electricity charges were 26.4 per cent for the North Island and 21.8 per cent for

the South Island. He said this now completed the previous Energy Minister’s intention to charge North Island supply authorities 10 per cent more than the South for their bulk power. Mr Priest told the meeting that the North Island generated about 80 per cent of its own requirements and imported about 20 per cent from the South Island. If the North Island paid 10 per cent extra for the 20 per cent it imported this would justify a differential of 2 per cent — not 10 per cent — between the two islands.

“In my opinion the imposition of a 10 per cent differential in electricity prices cannot be justified and is in effect a regional levy and a regional subsidy applied quite unselectively,”

said Mr Priest. “It seems wrong in principle for unemployed people in the North Island to pay more for their electricity so that wealthy people in the South Island can pay less.” Mr Priest said it was significant that an existing subsidy to selected power consumers in the South Island was to be discontinued. “It is to be replaced by a subsidy to all electricity consumers in the South Island (whether they need it or not) and paid for by all of the North Island electricity consumers (whether they can afford it or not).” The committee recommended the New Plymouth City Council express its concern to the Minister of Energy, Mr Tizard, on the points Mr Priest had made.