'Mad as hell' over power cost

Malcolm Macpherson
Malcolm Macpherson
Central Otago Mayor Malcolm Macpherson is "mad as hell" about power prices and wants the Government to take notice.

Dr Macpherson is rallying support in his home town of Alexandra in an effort to help people struggling with increasing power prices, particularly after a long, cold winter during a recession.

"This is such a big issue that a few polite letters and a whinge to our MP won't have any worthwhile effect. We need to mobilise as a community and send a clear message to Wellington that we're as mad as hell and we won't take it any longer," he said.

Letters from senior citizens in Alexandra detailing their struggle to keep warm this winter prompted Dr Macpherson to act.

In past weeks, The Lakes District and Central Otago News community newspaper has published letters from residents angry about their monthly power bills - some of which are reportedly more than $1000.

"In the past, people have mentioned high power prices, but there's a different level of concern this year," Dr Macpherson said.

He said Central Otago residents were especially frustrated with power prices because they lived so close to major sources of power generation.

"There's a perceived injustice because we are sitting literally in the shadow of one of the biggest generation resources in the country [Contact Energy's Clyde hydro-electric dam] and we are being told we are paying more because we are a long way from supply.

"It's not necessarily a logical response, but it's a reasonable response when sandwiched between the Roxburgh and Clyde dams on the Clutha River," he said.

Dr Macpherson has supported plans for additional electricity generation in Central Otago but said that would not reduce power prices in the area.

"There would be benefits to our economy from construction, but evidence suggests another dam or wind farm would not lower power prices because electricity is a national resource and priced nationally."

He saw no short-term fix but said Government acceptance of the problem could spark changes.

A public meeting will be held on August 20 at the Alexandra War Memorial theatre from 7.30pm.

Dr Macpherson wants electricity and welfare professionals to attend and answer questions about power pricing, cheap heating and where people could go for help.

A relief fund for people in need could also be established if charitable or government organisations provided financial support, he said.

National's Otago MP, Jacqui Dean, said a Government review of the electricity sector was under way and the outcomes would be thoroughly considered by politicians.

She acknowledged some Central Otago residents were struggling to pay power bills and supported the idea of a public meeting.

Contact Energy communications manager Jonathan Hill said electricity prices were set according to costs of generation, transmission, local distribution and the retail price to consumers.

Contact's prices for Central Otago were in the middle of a national range.

Competition in the area was "extremely strong" and winter power bills differed according to whether power companies charged a flat or seasonal rate.

In recent years, the South Island had relied heavily on power generated in the North Island, although building additional power generation in the South would not necessarily reduce power prices, as the cost of generation was increasing, Mr Hill said.

- rosie.manins@odt.co.nz

 

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