Mike Butler: Sparks fly in electricity fight

A proposal from Labour leader David Shearer and Green co-leader Russel Norman, announced on Thursday, to bring down power prices, is the latest round in a tit-for-tat political struggle started by the National-led government’s policy of selling assets to keep the ship of state afloat. Labour had joined the Green Party in collecting 320,000 signatures to oppose the part-privatisation of electricity generating companies, and then 400,000 pre-registered for the Mighty River Power float, with 400,000 trumping 320,000.

Frank Newman: A new uncertainty

I have for some time now expressed the view that the greatest risk to investors at the moment is political uncertainty. After this week news stories about changes to the electricity market I am certain that is the case. Just to recap, last week the Labour and Green parties jointly announced that should they become the government after the general election late next year, they would regulate pricing in the wholesale power generation market.

Michael Coote: Will tribal risks be fully disclosed in Mighty River Power sale?

The Mighty River Power (MRP) share float is being rushed through by a National minority government anxious to score a public relations victory. For prime minister John Key, the float is his chief hope of leaving behind a political legacy to be remembered after he has claimed his exiting knighthood. 

There will be tension between Mr Key, who would want to get the shares away come what may to help him win his gong, and finance minister Bill English, who should seek the highest possible price to pad out the government’s ailing books.