Electric Kiwi is shutting its doors to new customers, blaming soaring wholesale energy prices.

The power retailer says prices have increased by nearly 50% in the past six months, and it has now reached a point where every new customer would lose it money.

It says the big four gentailers —Mercury, Contact, Meridian and Genesis— all made over $2 billion in record profits last year.

Electric Kiwi CEO Luke Blincoe told Mike Hosking the Electricity Authority and Commerce Commission have allowed market failure to happen under its watch. 

He says we rely on the market to deliver an essential service efficiently and that's not happening with the current distortions.

LISTEN ABOVE

Electric Kiwi is shutting its doors to new customers, blaming soaring wholesale energy prices. 
The power retailer says prices have increased by nearly 50% in the past six months, and it has now reached a point where every new customer would lose it money. 
It says the big four gentailers —Mercury, Contact, Meridian and Genesis— all made over $2 billion in record profits last year. 
Electric Kiwi CEO Luke Blincoe told Mike Hosking the Electricity Authority and Commerce Commission have allowed market failure to happen under its watch.  
He says we rely on the market to deliver an essential service efficiently and that's not happening with the current distortions. 
LISTEN ABOVE

Open your mind to the world with New Zealand’s number one breakfast radio show.

Without question, as New Zealand’s number one talk host, Mike Hosking sets the day’s agenda.

The sharpest voice and mind in the business, Mike drives strong opinion, delivers the best talent, and always leaves you wanting more.

The Mike Hosking Breakfast always cuts through and delivers the best daily on Newstalk ZB.

Open your mind to the world with New Zealand’s number one breakfast radio show. Without question, as New Zealand’s number one talk host, Mike Hosking sets the day’s agenda. The sharpest voice and mind in the business, Mike drives strong opinion, delivers the best talent, and always leaves you wanting more. The Mike Hosking Breakfast always cuts through and delivers the best daily on Newstalk ZB.

Open your mind to the world with New Zealand’s number one breakfast radio show.

Without question, as New Zealand’s number one talk host, Mike Hosking sets the day’s agenda.

The sharpest voice and mind in the business, Mike drives strong opinion,...

The Mike Hosking Breakfast

Luke Blincoe: Electric Kiwi CEO says wholesale energy prices are why they're not accepting new customers

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/9841ee09-49c3-4b89-930c-b1b00153da9c/transcript

At the end of each week, Mike Hosking takes you through the big-ticket items and lets you know what he makes of it all. 

 

New Zealand: 8/10 

It really has been quite the week. From the dairy to the spending, the turnaround, without question, is real. The confidence is up and the roll could be close to being on. 

 

Kiwifruit: 9/10 

The forecast and plan released this week is a good example of how you think big when you are bullish. 

  

Mitch Barnett: 4/10 

We wish him well, obviously, but the geography of the Warriors cannot be escaped. And we get a swap. And more importantly, this is our year. 

 

Air New Zealand: 3/10 

In an industry awash with profit, they still can't find one. 

 

Cash: 7/10 

The banks are, rightly or wrongly, out of step with this one. We like cash. We may not use it all that often, but enough do. Reserve bank - 1. Retail banks - 0. 

 

LISTEN ABOVE FOR MIKE HOSKING'S FULL WEEK IN REVIEW 

At the end of each week, Mike Hosking takes you through the big-ticket items and lets you know what he makes of it all.&nbsp;
&nbsp;
<a href="https://www.newstalkzb.co.nz/on-air/mike-hosking-breakfast/audio/campbell-parker-dairy-nz-ceo-on-the-industrys-highest-production-and-export-earnings-ever/">New Zealand: 8/10</a>&nbsp;
It really has been quite the week. From the dairy to the spending, the turnaround, without question, is real. The confidence is up and the roll could be close to being on.&nbsp;
&nbsp;
Kiwifruit: 9/10&nbsp;
The forecast and plan released this week is a good example of how you think big when you are bullish.&nbsp;
&nbsp;&nbsp;
Mitch Barnett: 4/10&nbsp;
We wish him well, obviously, but the geography of the Warriors cannot be escaped. And we get a swap. And more importantly, this is our year.&nbsp;
&nbsp;
<a href="https://www.newstalkzb.co.nz/on-air/mike-hosking-breakfast/audio/nikhil-ravishankar-air-new-zealand-ceo-on-the-companys-40-million-half-year-loss/">Air New Zealand: 3/10</a>&nbsp;
In an industry awash with profit, they still can't find one.&nbsp;
&nbsp;
<a href="https://www.newstalkzb.co.nz/on-air/mike-hosking-breakfast/audio/roger-beaumont-banking-association-ceo-on-the-reserve-banks-push-for-banks-to-provide-cash-services/">Cash: 7/10</a>&nbsp;
The banks are, rightly or wrongly, out of step with this one. We like cash. We may not use it all that often, but enough do. Reserve bank - 1. Retail banks - 0.&nbsp;
&nbsp;
LISTEN ABOVE FOR MIKE HOSKING'S FULL WEEK IN REVIEW&nbsp;

Mark the Week: New Zealand's turnaround is real

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/611176f5-d873-40dd-af0d-b3fd015b7c5a/transcript

There is no doubt that Air New Zealand has issues. 

In a week of company reports, the vast majority contained good news. Air New Zealand was a glaring exception. 

A national airline losing money in an industry that is booming doesn’t make sense. 

They have engine issues – that is real and it's not over. 

They have eight grounded planes and planes that don’t fly don’t make money. 

They have issues getting planes, but that has been applicable to everyone. 

So it's a perfect storm of sorts. But if you read the report the engine compensation was $55 million, but the bottom line would have been $90 million if the engines were on the plane. 

But add $90 million to the loss and you still aren't making a lot of profit. 

They blame domestic demand, or lack of it. 

They blame increased charges and they are real. The cost-plus-accounting of landing charges and so on is not only material, but criminal, and the Government as a main shareholder needs to do more. 

Then enter David Seymour in election year who says we should sell the thing. "Go woke, go broke" and "they are too politically motivated," says Seymour. 

Seymour is wrong. We need a national airline. Just imagine the sale to a private operator and the thing tanks. A country needs an air network and Jetstar isn't it. The Government has saved Air New Zealand before, they could do it again as a country with no airline is not a country. 

But that doesn’t mean Seymour is completely wrong; Air New Zealand is woke and it does have reputational issues. 

It has focused on uniforms and departure videos to a degree that is laughable. The great airlines like Emirates, Singapore, and Qatar have ordinary uniforms and ordinary videos, but world class product and a shedload of profit. That is where Air New Zealand is badly missing. 

Too often they charge first-world prices for budget services and domestically the services are not reliable enough. 

There is a line between their genuine issues and their brand issues. They do have problems, but they also don’t look like all they could be and haven't for years. 

Some of it is a small country with a small population. Some of it is too much purple and too much PR around Cassava crisps and $800 flights to small towns. 

The CEO has a hell of a job. The turnaround, they say, is coming. 

If you read this week's report, I don’t see it yet. 

There is no doubt that Air New Zealand has issues.&nbsp;
In a week of company reports, the vast majority contained good news. Air New Zealand was a glaring exception.&nbsp;
A national airline losing money in an industry that is booming doesn’t make sense.&nbsp;
They have engine issues – that is real and it's not over.&nbsp;
They have eight grounded planes and planes that don’t fly don’t make money.&nbsp;
They have issues getting planes, but that has been applicable to everyone.&nbsp;
So it's a perfect storm of sorts. But if you read the report the engine compensation was $55 million, but the bottom line would have been $90 million if the engines were on the plane.&nbsp;
But add $90 million to the loss and you still aren't making a lot of profit.&nbsp;
They blame domestic demand, or lack of it.&nbsp;
They blame increased charges and they are real. The cost-plus-accounting of landing charges and so on is not only material, but criminal, and the Government as a main shareholder needs to do more.&nbsp;
Then enter David Seymour in election year who says we should sell the thing. "Go woke, go broke" and "they are too politically motivated," says Seymour.&nbsp;
Seymour is wrong. We need a national airline. Just imagine the sale to a private operator and the thing tanks. A country needs an air network and Jetstar isn't it. The Government has saved Air New Zealand before, they could do it again as a country with no airline is not a country.&nbsp;
But that doesn’t mean Seymour is completely wrong; Air New Zealand is woke and it does have reputational issues.&nbsp;
It has focused on uniforms and departure videos to a degree that is laughable. The great airlines like Emirates, Singapore, and Qatar have ordinary uniforms and ordinary videos, but world class product and a shedload of profit. That is where Air New Zealand is badly missing.&nbsp;
Too often they charge first-world prices for budget services and domestically the services are not reliable enough.&nbsp;
There is a line between their genuine issues and their brand issues. They do have problems, but they also don’t look like all they could be and haven't for years.&nbsp;
Some of it is a small country with a small population. Some of it is too much purple and too much PR around Cassava crisps and $800 flights to small towns.&nbsp;
The CEO has a hell of a job. The turnaround, they say, is coming.&nbsp;
If you read this week's report, I don’t see it yet.&nbsp;

Mike's Minute: Air NZ has issues and the turnaround is a way off

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/f40e56ae-2aa3-40d1-b5ba-b3fd01554d8b/transcript

Progress towards a nuclear deal between the US and Iran remains murky with all-out war still a potential outcome.  

A third round of indirect talks has just concluded in Geneva, with further discussions to take place in Vienna next week.  

The pressure's on Iran, with the US deploying its biggest military build-up to the Middle East in decades. 

US Correspondent Richard Arnold told Mike Hosking the debate about whether an attack is viable is spilling out into the public now. 

LISTEN ABOVE  

Progress towards a nuclear deal between the US and Iran remains murky with all-out war still a potential outcome. &nbsp;
A third round of indirect talks has just concluded in Geneva, with further discussions to take place in Vienna next week. &nbsp;
The pressure's on Iran, with the US deploying its biggest military build-up to the Middle East in decades.&nbsp;
US Correspondent Richard Arnold told Mike Hosking the debate about whether an attack is viable is spilling out into the public now.&nbsp;
LISTEN ABOVE &nbsp;

Richard Arnold: US Correspondent on the continued tensions between Iran and the US

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/26c39ca1-7e71-47a9-b312-b3fd015252ea/transcript

Luke Blincoe: Electric Kiwi CEO says wholesale energy prices are why they're not accepting new customers

In 1 playlist(s)

The Mike Hosking Breakfast

Social links

Follow podcast

Recent clips