20 Aug 2010

Energy sector by Bollard comments not justified - Trustpower

9:58 am on 20 August 2010

Trustpower says comments by Reserve Bank Governor Alan Bollard about the energy sector are not justified.

Dr Bollard said on Thursday that the energy and local government sectors as examples of those responsible for persistent price increases.

But he electricity retailer says power companies raise prices only when costs cannot be absorbed.

Dr Bollard also said that if businesses, unions and households use the upcoming GST increase on 1 October as a veil to increase margins and wages, inflation will increase above expectations, interest rates will go up and the economic recovery will be harmed.