8 Feb 2012

Higher power prices foreseen by Labour

12:48 pm on 8 February 2012

Labour has renewed a warning that any privatisation of state-owned power companies will force electricity prices higher.

Electricity bills are expected to rise by up to 10% this year, as power retailers pass on the cost of upgrades to the national grid.

Energy spokesperson Moana Mackey says people are already struggling to pay their power bills and the Government's plan to sell 49% of three State electricity companies will only make matters worse.

Ms Mackey says private investors will expect the maximum return on their investment, and the current requirement for state-owned energy companies to show pricing restraint will disappear.