Ian McLean Spokesperson for the Green Party

The Greens and Labour grabbed the initiative on the energy landscape last week, announcing that a new national purchasing entity (NZ Power) would be created when they returned to Government.

The aim? To lower electricity prices for consumers. It seems like an outcome that ought to appeal to politicians, but Minister Joyce is incensed. The reduction comes from PowerCo profits.

The cost? Greater risk in the marketplace, to be added to uncertainties over Tiwai Point, and other risks identified in the Mighty River Power (MRP) float proposal.

Potential investors in MRP are increasingly nervous. Meridian share prices fell 3 per cent in one hour, and other PowerCo shares have tumbled.

Despite Government hype, asset sales are not a popular policy and entail considerable uncertainty. This deft move by the opposition seems to have caught the Government unawares. One wonders what else they have missed.

Rod Oram reports that sound advice on investing in the MRP float is hard to find. Likely, it just got even harder.

Ian McLean is a spokesperson for the Green Party of Aotearoa New Zealand.

Contact Ian G. McLean on 021 547 556 or 07 579 4670 or email: ian.mclean@greens.org.nz