Dry spring conditions have led to a surge in power pricing. Photo / 123RF
Dry spring conditions have led to a surge in power pricing. Photo / 123RF
A Wellington boarding house has been stung with a $1500 power bill for one week, as spot prices surge.
Posting to a Facebook group, the boarding house owner called the price spikes "ridiculous" and asked for recommendations for an alternative electricity provider.
Owner Matthew Wright said the bill was normallyabout $500 per week but in the past month it had gone up to $600.
"And now this $1500pw bill, I note on one single day last week the consumption was over $400! As we don't live there we have no control over consumption times etc."
Wright, who provides electricity, gas and wifi services as part of his tenants' rent, said he didn't blame Flick.
He believed the spot price hikes were electricity generators "gaming" the system. But he said he'd have to put rents up 5-10 per cent early next year as result of higher power, rates and insurance costs. His boarding house had 30 rooms for long-term tenancies. Wright said he signed up with Flick a year ago. He was now considering what to do until spot prices come down. He would probably stay with Flick, but switch to its fixed price tariff for a while.
Electricity generation companies have been approached for comment
The boarding house operator isn't alone in expressing frustration about the recent pricing from Flick.
Social media is abuzz with complaints about Flick's recent bills, though many Facebook posts also sympathised with the pressure on the small Flick team from customers trying to urgently switch to the company's "Fixie" arrangement.
The retailer, founded by six Wellington entrepreneurs in 2014, sells power nationwide at wholesale prices on fixed and "freestyle" - spot price - arrangements.
Spot prices come with the risk of fluctuation, given that they are dependent on the shifting market rates.
Last year, the company warned customers to think carefully before signing on for a spot price agreement given high energy prices.
Due to the volume of recent complaints, the company was unable to answer calls this morning and was asking callers to leave a message. However, it said it had set up a special online function for customers to switch from a spot price to fixed price arrangement.
In its latest website update, the company says electricity spot prices have been high because storage in the country's hydro lakes dipped below the long-term average in late August and have continued to fall to sit at 78 per cent of the average for this time of the year.
The dry spring had lifted spot prices above the usual levels for this time of the year and hydro generators, like thermal generators, had lifted their prices, the company said.
Dry spring conditions have led to a surge in power pricing. Photo/File.
The company said it could not say with any certainty how long current price conditions would continue.
"And it's important to note while spot prices may seem higher for our freestyling Flicksters right now, consumers on traditional plans will ultimately pay for the expenses being incurred now when they next review their prices (typically done on an annual basis).
Flick said it offers a self-serve function where customers can swap back and forth between fixed and spot prices at any time.
