Confirmation Of Windfall Profits Due To ETS

The announcement yesterday by Mercury Energy – a 100 percent owned subsidiary of Mighty River Power – that it will increase power prices by 3.3 percent from July 1 is confirmation of the windfall profits that the Government will make from the ETS, ACT New Zealand Climate Change Spokesman John Boscawen said today.

"The reality is that Mighty River Power is virtually a 100 percent renewable generator and incurs little additional emissions costs from its hydro and geothermal plants," Mr Boscawen said.

"However, Genesis which owns the Huntly power station and does incur significant costs under the ETS will force up the wholesale price for everyone, which means companies like Mighty River Power and Meridian Energy will be able to charge higher prices and generate windfall profits as a consequence.

"Worse still, the Government is not telling the people of New Zealand the truth when it says it will receive ETS revenue of only $350 million in the first year.  This underestimates the Governments revenue as it excludes the extra profits that will be made by Mighty River Power and Meridian Energy from the ETS.

"It’s time the Government stopped misleading the New Zealand public on its ETS figures and finally told everyone the truth," Mr Boscawen said.