State owned power company Meridian Energy is raising its prices by an average of 6.5 per cent across New Zealand, with higher increases in Canterbury and Dunedin. This is the company’s second price increase in the past six months and comes at a time when hydro generation lakes are so full that they have to spill water over the top of damms, the cost of Meridians `fuel’ for generation is basically zero. Energy Minister Gerry Brownlee called the increase “ludicrous” and told The Press that he had “expressed disappointment” to Meridian when told of the impending price increase last night. “I can tell you I’m not happy about it,”

Green Party co-leader Jeanette Fitzsimons agreed that it was “a huge increase”.

I don’t think it is justified. It is way, way more than the rate of inflation. The public would expect a publicly owned company, when people are losing jobs, to look at pruning their costs. Is Meridian’s lavish advertising programme necessary for a power company? Is the salary structure for their very top people appropriate? They should look at pruning spending before they expect consumers to pay more.

Christchurch Age Concern chief executive Stephen Phillips said the 7 per cent was “horrendous” adding “We are worried about the impact of power price increases on older people on fixed incomes and also those with less income available from the decrease in interest rates from investments.” Age Concern has been campaigning since last year on the issue of “energy poverty” people requiring more than ten per cent of their income maintain their homes the minimum safe temperatures set by the World Health Organization.