Another power price increase could not have come at the worst time for Kaikohe mother of six Amber Woods.
Photo / Supplied
Another power price increase could not have come at the worst time for Kaikohe mother of six Amber Woods.
Photo / Supplied
Households on low-use power plans in Northland are bearing the brunt of yet another rise in electricity prices and will continue to feel the pain over the next five years.
On top of that, gas users could be paying an extra $220 over the next four years if a draftfrom the Commerce Commission on price and quality control changes to gas networks gets approved.
Low fixed charge tariff regulations are being phased out after a recommendation to government by the independent Electricity Price Review last year.
The Review further recommended the regulations be phased out over five years until it is about the same as the standard fixed charge and to help moderate the impact of the increasing fixed charges on most low-use households.
From April 1, power companies were allowed to levy maximum low fixed charge of 60 cents a day. That rate will increase to 90 cents per day from April 1 next year and an additional 30 cents will be added each year until 2027 when low fixed charge is phased out.
However, power companies may choose to set lower rates for their low fixed charges.
A power credit scheme is being developed to support households adversely affected during the phase-out and who are struggling to pay their power bills.
The electricity industry has committed $5 million to the scheme for the duration of the phase-out. Details are still being worked out.
According to a quarterly survey of domestic power price charges by the Ministry of Business, Innovation and Employment, households in Kerikeri are paying the highest electricity prices in New Zealand at 43.95 cents per kilowatt hour on average.
Whangārei households are paying 33.88c per kWh while the New Zealand average is 31.9c per kWh.
Meridian has already doubled the overall fixed charge for its low-user residential customers in Northland — from 34.5c to 69c a day from April 1 (last Friday). Half of that is lines charges for Northpower and Top Energy.
On average, Meridian residential customers will see an increase of about $8.76 per month.
The company has 6371 customers in Northland.
Northpower is increasing fixed charge portion by 15 cents per day to retailers on a low fixed charge plan.
Photo / Michael Cunningham
Mercury has about about 8000 customers in Northland.
Its customers in Whangārei will see an average power price rise of 2.4 per cent or an additional $3.75 a month.
In the Far North, a bigger decrease to lines charges means the average price change based on lines and energy is nil.
"However due to the phasing out of low fixed charge tariff regulations, there will be a mix of decreases and small increases on customers' total bills," a spokeswoman said.
Already being forced to dip into her power budget to counter rising cost of living, another price rise could not have come at the worst possible time for Kaikohe mother of six Amber Woods.
She's with Orcon at present and has given up shopping around for the best power companies.
"Winter is the worst time for power prices to go up. Why do power prices keep going up every year when incomes don't change?"
Woods said a monthly power bill of $450 was a "good one" for her family and the highest she has paid was around $700 in winter.
For those on a low fixed charge plan, Northpower is increasing fixed charge portion by 15 cents per day to retailers.
The Government believes phasing out low fixed charge tariff regulations will create a fairer and more equitable system.
The regulations were introduced in 2004 to provide electricity plans with a discounted fixed charge that aimed to reduce power bills for low-use, low-income households.
However, the government said as the regulations were poorly targeted, they only helped some low-use households while pushed others into greater energy hardship, including many low-income families with high electricity use.
'The low fixed charge tariff regulations also have unintended effects on households' electricity use, create barriers for industry to undertake distribution pricing reform and increase complexity and confusion for consumers."
Powerswitch manager Paul Fuge said recently several factors have snowballed to affect annual price rises.
He said the biggest losers would be households on low-use dual-fuel— consumers who used lower than average amounts of electricity who were also gas users.
Check out www.powerswitch.or.nz to see which power company is cheaper in your area.
Power saving tips:
• Switch off lights in rooms you aren't using or won't be in for a while • Shut the curtains before the sun sets to keep the warmth in • Avoid running a second fridge all the time unless you really need to • Unplug devices that are charging (phones, laptops etc.) once the battery is full • Turn your hot water cylinder down. The Ministry of Health recommends 60C or higher to prevent the growth of legionella bacteria • Close doors of the rooms that you don't need to heat or cool
