Electricity wholesale prices have risen dramatically this month (December 2010). This means that all retail electricity prices will rise soon.
Power prices went up this month to almost three times the benchmark price. The benchmark is the price of electricity from new power stations said Powerswitch.
Turn it off - Power is going up!
What changed this year is that “reliability of supply” is now provided by the market, not byGovernment.
The new Electricity Authority is pressured to put controls on the generator’s ability to put up prices – but only after extensive consultation.
In the meantime we rely on Ministerial pressure to force wholesale power prices back to a reasonable level. Until then, high spot prices will guarantee improved profits for all generators.
“The market” is not leading to efficient pricing. High spot prices have the same effect on all competing power companies, This means nearly all retail prices will rise again, in the near future.
It might pay to consider energy saving tips in your household. Make sure the power switch is off on all your appliances.
For more information visit Switchme.co.nz for more details.
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