It’s taken Labour nine years to allow us to keep a little mroe of our own money, but the day before the tax cuts finally happen we’re faced with power price rises.
On the eve of the Government’s tax cuts some Contact Energy customers have been lumped with a 10 percent hike in the cost of electricity.
The increase in Wellington, Nelson and Dunedin takes effect on November 1 – but is expected to be rolled out nationwide in the coming months.
The company is defending its decision to hike prices, a month after posting a $237 million annual profit, blaming a lack of new generation and problems transporting electricity to the South Island.
Raewyn Fox from the Federation of Family Budgeting Services says many people were hanging out for tax cuts, and this increase will make a big dent in them.
And as the government owns the company, the tax cut we get with one hand will go back in power bills paid to the other.
Correction & Apology: : As The Double Standard and Poneke have pointed out Contact is a private company. no excuses, I didn’t check my facts I apologise and I’m sorry.
However, the give and take still applies because Meridian which is an SOE and Mercury which is owned by an SOE are putting up their prices too.