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Economic weather report: Electricity lines and power prices rising faster than inflation

Posted in News

Click here for this mornings video. Click here for today's video. Bernard Hickey details an economic weather report in association with ASB showing how retail power lines prices and electricity prices have risen faster than the annual rate of inflation in recent years. Here is a link to all of our 'price' charts.

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

We welcome your comments below. If you are not already registered, please register to comment in the box on the right or click on the "'Register" link at the bottom of the comments.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current Comment policy is here.

23 Comments

This is the truth my

This is the truth my electricity bill has increased over 5 cents a kilowatt since last year.

Spam alert above.

Spam alert above.

Non durable goods, Consumeable goods,

Non durable goods, Consumeable goods, Foods, and things in the supermarkets that are needed daily really cost alot nowadays! But, data seems to indicate inflation is below 3 percent. What's going on?

The Labour Government saw this

The Labour Government saw this as a way to raise taxes in their usual sneaky way to pay for election bribes etc and that in turn lead to nit wit Cullen crowing what a great finance minister he was. To me he was just another state crook. Now, the question is, what is National going to do to stop this rip off. As it was their Mad Max Bradford that instigated this idea I would think they will do bugger all about it. They all come out of the same mould or should that be mold?

Bernard - you ask, "What's

Bernard - you ask, "What's happening here?"

Some answers here:

http://www.interest.co.nz/ratesblog/index.php/2009/05/08/opinion-why-pri...

and:
"Will it take more Blackouts before we see the Light? A Systems Approach to the New Zealand Electricty Industry Issues," Canterbury Manufacturers' Association, August 2006. (Probably still available as hard copy from NZMEA.)

I hope we don't get

I hope we don't get to this !

"Pupils at a primary school in the southern county of Cork are being asked to bring their own toilet paper to school to help save money, one of the starkest examples yet of the death of Ireland's "Celtic Tiger" economy."

Hey Harriet, maybe the banknotes

Hey Harriet, maybe the banknotes are cheaper than the dunny paper.

@Grandy - I believe the

@Grandy - I believe the main reason prices have risen in supermarkets over the last year or two is because of fuel prices. Although power prices will also play a small part.

It is about time something was done about the power prices. These damn power companies have been ramping up prices much more than they should be over the last 6 years, and even with the recent debacle about their profits being too high nothing has been done! I say drop the power prices by 5% across the board now, and cap the increases at 3% pa.

Osty Says: I say 10%

Osty Says: I say 10% drop now and 3% increase pa. I guess that the books were so bad when National came in that that wont happen.

Bobby Says: "Osty Says: I

Bobby Says: "Osty Says: I say 10% drop now and 3% increase pa." - I didn't say that? LOL No offense taken, but you really should use copy and paste though.

Statements like xyz is rising

Statements like xyz is rising faster than inflation make no sense.
The cpi numbers are deliberatly manipulated downward. Inflation hasn't been below 3% for years, just look at the price increases.

@ Harriet. "I hope we

@ Harriet.

"I hope we don't get to this !"

LOL, it wasn't long ago that we all wanted to be the Ireland of the South Pacific.

Funny how nearly all of

Funny how nearly all of Electicity Co's there profits go to Govt's coffers Always Have. BS really.

This helps fund the 200 plus free loading lifestlyles all these political party's members leed.

Leave's not much for maintenance thats why Aucklanders CRY when sit in the dark. ha ha.

Anyway one of the poles that carry's power between the Si @ Ni Island will FAIL SOON probably in summer so we can all have a get together in the back yard and have a Barb-Q.

The cost of power is

The cost of power is stuff all compared to the loot being creamed by the banks from fools who borrowed hundreds of thousands to buy price bloated pine boxes off each other in the rush to get rich. That said, the elderly ought to receive power rebates according to the climate in the area they reside in and continue to have insulation installed at discount rates.

Wally , Good idea, But

Wally , Good idea, But as you know the poltical party's won't listen.

Remember they have their wires crossed.

WE are here to serve THEM NOT the OTHER WAY ROUND.

Mind you pay your BBQ

Mind you pay your BBQ carbon em. fee to the local council.

No BL##dy way, IF's OK

No BL##dy way,

IF's OK to have a GREEN MP do a controlled burn off on her property in the coromandel (that got out of control hence the fire service turning up)

There should be NO NEED to pay because SMOKE can't cause Global RORTE WARMING.

OH the green's can't be wrong can they?

OR Was That "AN OVERSIGHT" HA De Bl##dy Ha ha.

Osty Says: Mate, I was

Osty Says: Mate, I was just replying to your post what I thought should happen.I upped the ante on what you thought. Cheers

@Les, in terms of privatisations,

@Les, in terms of privatisations, the private power companies seem to charge more than the SOE's so I think that opinion is a crock of doggy doo doo. ie there is an assumption that there is a competitive "perfect" market, there is no such thing and especially in the elec market and I dont see how taking more $ from one area of the economy and making bigger profits in another helps....in fact if the companies are sold to overseas investors then that makes the balance of payments worse.....

@Et al: the reason I see that power is going up so much is to fund the infrastructure expansions we need because we consume more...so if we need more power lines and wind farms etc that's our fault...we use 3%? more per year just standing still....so our "productivity" is dropping....

regards

@simon7 A green MP didnt,

@simon7 A green MP didnt, her husband did....and a controlled (or not) burn off just releases the carbon faster, ie as the brush dies and rots it releases it anyway.

regards

@DavidC, not true the CPI

@DavidC, not true the CPI is a basket of costs, its designed for comparisons...

regards

I always looked at cost

I always looked at cost of electricity as just a government tax I have SOME control over. If I don't want to keep handing over more of my money in generator dividends to the governement, then turn the lights off.