Electricity - media downplaying the opposition proposals

This is absolutely reprehensible journalism - and it proves the case for melding of state and corporate power (together with media).

They are not even bothering to give voice to the proposals.

By giving the attention to the governmen's response it is weakening the impact of the Opposition who have poposed something that is adopted by many countries, including states in the United States (hardly bastions of 'Soviet-style socialism'!

The Chairman of the Board for Radion New Zealand is Richard Griffin who is National's man, through-and-through.

Govt says Opposition trying to scupper Mighty River sale

The Government has accused Opposition parties of trying to sabotage the partial sale of Mighty River Power by announcing a policy it says amounts to nationalising the electricity industry.

Radio NZ,

19 April, 2013

The Labour and Green parties say they would set up a Crown entity called New Zealand Power that would buy electricity from generators at a set price and then pass the savings on to consumers.

Energy Minister Simon Bridges criticised the announcement of the policy just days after shares in state-owned electricity company Mighty River Power went on sale.

Mr Bridges says it smacks of policy on the hoof to try and scupper the sale.

Labour leader David Shearer rejects that criticism and says the party is being clear about its intentions.

Labour and the Greens say the Government's approach isn't working, and setting up a single purchaser of electricity will cut household power bills.

The Institute of Economic Research says the policy is absurd because bureaucrats would not have the right knowledge to accurately set a fair power price for the whole country.

Chief executive Jean-Pierre de Raad says electricity companies would artificially increase their costs in order to drive up the price.

"It's just terrible economics," he said. "The ability to suppress prices is illusionary ...eventually we'll end up paying more for our power.

"And also, where do you stop? So we see food prices rise - should we have a central buyer for food?"

Consumer New Zealand says change is needed because power prices have risen much faster than inflation for more than a decade, and as long as the proposed regulator is vigilant it will be able to prevent companies gaming the system.