WHAT’S GOING ON WITH ELECTRICITY PRICES?

Newsletter – Electricity Prices & Public Assets

WHAT’S GOING ON WITH ELECTRICITY PRICES?

Here’s something worth knowing.

Recent information shows that the New Zealand Government (the Crown) receives hundreds of millions of dollars every year in dividends from major electricity companies.

At the same time, households and businesses continue to face high electricity costs.

So naturally, people are asking:

Are we paying for power…
or are we funding government revenue?

—

THE SITUATION (IN SIMPLE TERMS)

Three major electricity companies – Genesis Energy, Mercury, and Meridian Energy – pay significant dividends to the Crown each year.

That means:
• The Government earns money from electricity sales 
• The public pays the electricity bills 

—

WHY THIS MATTERS

Electricity isn’t a luxury — it’s essential.

So when prices stay high while large profits are returned to the Crown, it raises a fair question:

Is the system designed for public benefit… 
or revenue collection?

—

A QUESTION OF BALANCE

The Crown plays multiple roles:
• Owner (receives dividends) 
• Rule-maker (sets policy) 
• Overseer (regulates the system) 

That combination makes transparency critical.

—

WHAT’S BEEN DONE

A formal request has now been made under the Official Information Act asking:

• How dividend levels are decided 
• Whether electricity pricing is influenced by revenue targets 
• What impact pricing has on affordability and hardship 

—

WHY THIS NOTICE

This isn’t about accusations.

It’s about clarity.

New Zealanders deserve to understand:
• How essential services are priced 
• Where the money goes 
• Whether the system is fair 

—

WHAT HAPPENS NEXT

Once responses are received, the findings will be reviewed and shared.

If there is nothing to be concerned about, that will be clear.

If there are issues — those will also be made visible.

—

Because at the end of the day:

Electricity is not optional. 
And transparency shouldn’t be either.