It’s not just electricity bills

The excessive profits reported at big electricity companies ( Unions take aim at big power firms, Nov 14) seem to be replicated in other parts of the energy sector.

On October 27, my home gas supplier (Trustpower, part of Mercury Energy) announced that ‘‘we have seen an increase in our costs’’ leading to an increase of 33 cents a day for a ‘‘typical home’’.

I asked Trustpower for more data, including how much of the increased costs came from raising the wages of its front-line workers. The reply avoided my questions, and told me that ‘‘unfortunately, over the past year, we have seen a change in our costs and as a result, we do need to change our gas charges’’.

Asking again for answers, I was told that ‘‘some of what you are asking is deemed to be commercially sensitive information . . . we are able to disclose that we have seen gas network charges, carbon pricing and international commodity prices [including] Powerco network up by 3.6% and Firstgas transmission costs up by 13%’’.

For what is in effect a natural monopoly, I conclude that the increased costs come from the contract cartel with Powerco, Firstgas and all the other hangers-on feeding at this lucrative trough.

Fair enough that consumers pay more for carbon pricing, but ‘‘international prices’’ for home-grown gas – really? Someone is making a lot of money from this artificial ‘‘market’’.

Alan Smith, Woburn [abridged]