Norman Russel: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeNorman Russel: Questions for Oral Answer — Questions to Ministers[Sitting date: 06 March 2014. Volume:696;Page:16409. Text is incorporated into the Bound Volume.]2.Dr RUSSEL NORMAN (Co-Leader—Green) to theMinister of Energy and Resources: How much more is an average New Zealand household that uses 8000 kWh of power annually paying for electricity per year as of November 2013 compared to November 2008 according to the Ministry of Business Innovation and Employment’s latest Quarterly Survey of Domestic Electricity Prices?Hon STEVEN JOYCE (Acting Minister of Energy and Resources): On average $70 more per year or adjusted for inflation $30 more. I would note that for the period 2000 to November 2008 the average increase was $90 per year or adjusted for inflation $60. I think that it is also important to note that the quarterly survey does not capture the discounts and deals that consumers can get from retailers—for example up to 15 percent prompt payment discounts are commonplace. These are not taken into account in that survey. Thanks to the Government’s reforms of 2010 the system is more competitive than it has ever been and substantial savings are available for consumers who choose to shop around.Dr Russel Norman: Can he confirm that according to the Ministry of Business Innovation and Employment the weighted average price of electricity to families increased by 20 percent from November 2008 to November 2013—an increase of $360 a year for the typical family according to the ministry?Hon STEVEN JOYCE: No. My understanding is that it is an average of $70 per year or adjusted for inflation $30.Dr Russel Norman: Does he support the Electricity Authority’s new inquiry into large electricity price increases that have been announced in recent weeks and does he now concede that there is a problem with power prices?Hon STEVEN JOYCE: The Minister supports the Electricity Authority’s approach to regulating this market—the Electricity Authority of course being an initiative of this Government to improve the performance of the electricity market which it quite plainly has done because the cost increases for electricity are approximately half what they were in real terms under the previous Government. I think it is important that theElectricity Authority independently regulates and manages the market and that we encourage as much competition as possible and that is what this Government is doing.Dr Russel Norman: Does he agree with Steven Joyce who yesterday told an energy conference that the Greens-Labour plan to reduce power bills by $300 a year was “a ‘solution’ in search of a problem” or does he agree that a $360-a-year increase in power prices is actually a problem for Kiwi families?Hon STEVEN JOYCE: Yes surprisingly I do agree with Mr Joyce. He went on to say that it was “a hastily thrown together press release designed to wipe millions of dollars of value from companies about to be listed under the mixed ownership model.” I agree with that. He said: “It was politically motivated and economically irresponsible.” I agree with that. He said: “to call it a ‘policy’ is to elevate to something it quite clearly is not.” I agree with that. And he said: “There is basically no international precedent for the opposition’s ideas.” I agree with that too.David Shearer: I have here in my hand—Mr SPEAKER: Order! Is the member seeking a point of order or a supplementary question?David Shearer: A supplementary question.Mr SPEAKER: Would the member please ask his supplementary question.David Shearer: And I am. On behalf of the people who have sent me their electricity bills which have gone up by up to 14 percent my question to the Minister is: does he believe that electricity prices are currently rising too quickly?Hon STEVEN JOYCE: Nobody likes it when prices go up. That is a given. But the prices of electricity have gone up less than the actual after-tax wages of New Zealanders which have gone up 23.4 percent since September 2008. I do not care what the member has got in his hand. There is no way he can argue that point.David Shearer: Does he disagree therefore with the people who have written to me saying their bills have gone up by up to 14 percent and does he say to them that it is not a problem?Hon STEVEN JOYCE: As I said nobody likes it when prices go up. The way to deal with that is to have more competition and that is what this Government is encouraging—more competition. I would encourage the people who have written to Mr Shearer not to waste their time doing that but to spend their time searching for opportunities through the switching website for example to reduce their power costs because that is actually what is happening to those people who are giving that a go.