Greens wants power companies to cap bill increases at inflation rate

The Green Party wants the Government to force power companies to cap power bill increases at the rate of inflation.

By Lauren Crimp of RNZ

The party's co-leaders wrote to Finance Minister Nicola Willis and Energy Minister Simon Watts urging them to require Meridian, Genesis and Mercury - which the Government has a 51% stake in - to lower prices and boost energy hardship programmes before winter.

Chlöe Swarbrick said overnment data showed nearly 200,000 households couldn't afford to heat their homes last year - up from 134,000 the year prior.

"We are calling on the ministers to use their influence, and their power, and every tool that is at their disposal so power companies do not raise their prices above inflation, and to stop households from being cut off this winter," she said.

Green Party energy spokesperson Scott Willis said the policy tools were already in place.

"The ministers can write to the boards of Meridian, Genesis, and Mercury this week and require them to scale up their energy hardship programmes," he said.

"As the controlling shareholder, there's nothing stopping the Government from doing exactly that."

The Green Party also wants the Government to establish a low-interest loan scheme for household energy upgrades like solar, which it's costed at about $7 million.

The letter also called for the Government to restore funding for the Energy Efficiency and Conservation Authority (EECA) and ensure no one's power is cut off solely because they cannot pay the bill.

The OECD last week recommended the Government reform the electricity sector to break its reliance on costly natural gas which has underpinned high prices.

Swarbrick said its report also noted that power companies' shareholder dividends were "well out of whack" with overseas equivalents.

She said the Government should follow the OECD's recommendation to develop an ownership strategy for companies that both generate and sell electricity, requiring them to prioritise secure, sustainable and affordable electricity above shareholder dividends.