It’s not their money

February 12, 2009

 Does Meridian Energy realise what it’s saying?

Increasing power prices now would shield customers from large increases if and when planned schemes came about: “Small increases provide a smoother path for consumers.”

 Is it the job of a power company to “provide a smoother path for consumers”?  That sounds like they think  they’re better able to manage our money than we are.

My concern is increased because of the proviso “if and when planned schemes come about”

What happens if planned schemes don’t come about, will we get our money back, with interest?

And how much more power generation do we need? The reduction in production at the Tiwai aluminium smelter means there is considerably less demand for power than there has been for some time.

The Remuneration Authority has a similar line  with regard to local body pay rates:

Authority chairman Richard Oughton, in the circular, said some local bodies were considering not increasing pay.

He said the increase from July 1 was conservative, somewhat less than it should be based on market conditions.

“A zero increase could create a situation where a larger, and perhaps less publicly acceptable, adjustment may be needed from July 1, 2010.

Further postponing an adjustment at that time would only serve to exacerbate the problem,” he said.

 He too is saying that a lower increase now will mean a bigger increase later.

I think ratepayers would prefer to keep a little more of their own money now and worry about how acceptable future pay increases are when the time comes. 

The government is sending very strong messages about the need for restraint so it’s possible that the pubic and private sector salaries on which councillors’ remuneration is based may show little or no increase in the short to medium term.

That would mean the big increase that Oughton is concerned about may not eventuate anyway.

If it does, at least we’ll have had a wee bit more of our own money under our own control in the meantime.


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