Hughes Gareth: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeHughes Gareth: Oral Questions — Questions to Ministers[Sitting date: 07 May 2015. Volume:705;Page:3312. Text is incorporated into the Bound Volume.]10.GARETH HUGHES (Green)to the Minister of Energy and Resources: Does he think that there is sufficient competition in the pre-paid retail electricity market to keep prices low for consumers?Hon SIMON BRIDGES (Minister of Energy and Resources):Well yes but in a sense it is wrong to say that competition in the markets is ever sufficient. There is always room for more of it. The other thing I would say is that competition the Government thinks needs to be viewed not as just some theoretical prepaid retail market but across the pre and post paid retail electricity market which represents the real choice the real spectrum of choices available to consumers of electricity.Gareth Hughes: Well does the Minister consider it a competitive market at all when in rural Northland the Hawke’s Bay central North Island Nelson Tasman rural Canterbury and the West Coast according to data released from the Parliamentary Library there is only a single retailer provider of prepaid electricity?Hon SIMON BRIDGES: It is an exceptionally competitive market. I do not think it is actually arguable to say anything other than that it is the most competitive it has ever been in New Zealand. We have got more electricity retailers than ever before—21—running 28 brands. We have seen a million switches since 2011. As I said in response to the member’s primary question and I say again in response to his supplementary question it is not just the prepaid market it is the entire electricity market that is more competitive than ever.Gareth Hughes: How on earth can it be a competitive market for prepaid electricity when the Minister’s answers to consumers are to shop around yet that does not apply to prepaid customers because in many regions a single supplier has a regional monopoly?Hon SIMON BRIDGES: It is an incredibly artificial position that the member has taken. He is right in some areas—Mighty River Power’s GLO-BUG is the only prepaid service. This is a relatively new innovation which broadly speaking is very competitive with post-paid retail plans. Again I say that consumers all over New Zealand in every single region have many effective choices between prepaid and many post-paid retailers. Shopping around does provide real answers and real competition for consumers.Gareth Hughes: Is the Minister aware that many consumers are literally forced on to a prepaid plan and for some of the tens of thousands of households on such plans compared with the cheapest standard plan it is 25 percent more expensive in Auckland for the average family household on a prepaid plan 24 percent more expensive in Dunedin 20 percent more expensive in Northland and 18 percent more expensive in Christchurch?Hon SIMON BRIDGES: One can always cherry-pick answers. What is very clear is that across the spectrum prepaid—[Interruption] They do not like it but these are the facts. Prepaid is competitive with post-paid and in some instances it is cheaper. We have the most competitive market ever and that is why even David Shearer has dropped David Parker’s barmy NZ Power scheme.Gareth Hughes: Is the Minister concerned that 58 percent of households with children that have prepaid electricity have run out of credit and run out of power in the space of a single year according to the New Zealand Medical Journal?Hon SIMON BRIDGES: The manner in which the member has asked that question is highly misleading. There are times of course where they have gone straight back out and reconnected on to those prepaid plans within minutes. As I say there is very effective competition in New Zealand in our power schemes and it is more competitive than ever.Gareth Hughes: For the House’s benefit I seek leave to table the report in the New Zealand Medical Journal titled “Kids in the Cold: Outcomes for New Zealand Households with Children Using Prepaid—Mr SPEAKER: Order! You have described the document. We now need the date.Gareth Hughes: That was just the title. The date is 15 March 2013.Mr SPEAKER: On the basis that it may be informative I will put the leave. Leave is sought to table this particular article in the New Zealand Medical Journal. Is there any objection? There is objection.Gareth Hughes: Would the Minister consider immediately starting work on a code of conduct for the prepaid electricity market to help protect what are some of our most vulnerable families?Hon SIMON BRIDGES: There is a vulnerable consumer code of conduct and to all intents and purposes it is working very well.