Vector price gouging

Denis Foot 29 August 2006

The Dompost called Denis Foot's recent letter relating to Vector over charging customers and his naming Mayors and Councillors who facilitated the sale of Capital Power, a case of "Ex-councillor berates others" but we think otherwise. Mr Foot makes a very valid point and we think it timely to remind Wellington's citizens of some political history.

"The Commission has found that Vector is significantly overcharging many of its customers, particularly in its Northern and Wellington regions and a substantial proportion of its industrial and commercial customers. At the same time, Vector is significantly undercharging particular groups of its customers, including Auckland Residential customers, who are also the principal beneficiaries of the Auckland Energy Consumer Trust (AECT), Vector’s principal shareholder." ...COMMERCE COMMISSION
Regulation of Electricity Lines Businesses
Targeted Control Regime
Intention to Declare Control
Vector Limited
9 August 2006

Here is Denis Foot's letter
The Editor
Dompost
August 28 2006

It is a bit rich for Mayor Prendergast to complain about Vector. (Dom Post 16 August Mayors slam Vector). Vector is an electricity network company, mainly owned by Aucklanders, which also owns the Wellington electricity lines.

Our electricity assets were flogged off at fire sale prices by the Wellington City Council led at the time by the privatisation cheerleaders, Fran Wilde, Mark Blumsky, Rex Nicholls and Mayor Prendergast.

Wellingtonians are now paying the penalty for that stupid decision as we are paying approximately 16% more than Aucklanders to the same company for the same electricity service.

The chickens are now coming home to roost.


Denis Foot