Mahuta Nanaia: Questions for Oral Answer — Questions to Ministers 
Mahuta Nanaia: Questions for Oral Answer — Questions to Ministers 
[Volume:664;Page:12395] 
9. 
Hon NANAIA MAHUTA (Labour—Hauraki-Waikato) 
 to the  
Minister of Energy and Resources 
: What action other than persuasion will he take if Contact Energy’s proposal to raise prices by 10 to 17 percent in Dunedin as referred to by the Prime Minister on Monday is followed by similar rises from other power companies? 
Hon Dr NICK SMITH (Minister for the Environment) 
 on behalf of the  
Minister of Energy and Resources 
: The Government is closely monitoring power price rises. We note that Meridian Energy Genesis and TrustPower have signalled no immediate price increase for consumers and they collectively amount to over 50 percent of the market share. Contact Energy which has a 25 percent market share has announced an increase of 3.2 percent and Mercury Energy which has a 23 percent market share has announced an increase of 3.3 percent. The Commerce Commission has put power companies on notice of the risk of prosecution if they misrepresent the price impact of the emissions trading scheme and the Government welcomes the commission’s firm approach. 
Hon Nanaia Mahuta 
: How can consumers be confident that his persuasive powers will keep power prices down given that Genesis Contact Energy and TrustPower all hiked prices by between 5 and 8.4 percent shortly after his warning to the electricity industry last year that it could not continue making large price increases? 
Hon Dr NICK SMITH 
: The key work that the Government is doing to constrain power prices is to increase the competitive pressure on them. I think that the huge increase in the amount of switching between the companies— 
Hon Trevor Mallard 
: Oh Max Bradford all over again. 
Hon Dr NICK SMITH 
: To hear Mr Mallard interjecting given that power prices went up by 72 percent when he was a Minister shows the intellectual hypocrisy on the Opposition benches. 
Chris Auchinvole 
: What advice has the Minister received regarding power price rises since 2000 in particular on what impact the emissions trading scheme would have had on power prices had it not been moderated? 
Hon Dr NICK SMITH 
: I am advised that power prices rose by 72 percent— 
Hon Member 
: How much? 
Hon Dr NICK SMITH 
: —72 percent when Trevor Mallard was a Minister. Furthermore they would have increased by 10 percent this year under the emissions trading scheme that Nanaia Mahuta voted for. Thankfully there was a change of Government and the impact of the emissions trading scheme on consumers has been more than halved. 
Hon Nanaia Mahuta 
: Does the Minister stand by his suggestion that Kiwis struggling to pay higher power bills should shop around; if so where does he suggest that they shop to avoid the 2.5 percent increase in power prices due to the impending GST rise? 
Hon Dr NICK SMITH 
: I draw consumers’ attention to the power companies that have announced no increase in their power prices. 
Hon Annette King 
: Today. 
Hon Dr NICK SMITH 
: Annette King interjects. I just remind her again that she was absolutely silent during the 9 years that she was a Minister when power prices increased by 72 percent. 
Hon Nanaia Mahuta 
: I raise a point of order Mr Speaker. I let it pass in my first supplementary question but this question was very specific and the Minister failed to answer it. 
Mr SPEAKER 
: I think in fairness that when members interject Ministers are at liberty to pick up on those interjections. Otherwise as Speaker I would be all the time getting to my feet to stop people interjecting. I do not want to do that; I want the House to be able to live. But that is the risk members run. If they interject a Minister may pick up on it and that is perfectly OK. 
Hon Nanaia Mahuta 
: Can the Minister confirm—[ 
Interruption 
] 
Mr SPEAKER 
: Please show some courtesy to the member asking the question. 
Hon Nanaia Mahuta 
: Can the Minister confirm that residential power prices have increased since 2008 and that a disparity remains between residential and business price increases; if so what steps will he be taking to control residential power prices? 
Hon Dr NICK SMITH 
: I note that the increases over the last 18 months are about 5 percent. That is significantly less than what they were in the preceding 8 years. But the Minister is determined to make further steps. That is why there is an important bill before this Parliament to make significant changes to the sector maximise those competitive pressures and particularly make it easier for consumers to change power companies. The advice I have for instance for the consumers in Dunedin who are with Contact Energy is that they should look at the options to switch to one of the companies that have not put up their prices.