Consumer NZ : Power price rises a shock for some

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Consumer NZ’s Powerswitch has been crunching the numbers and found some power uses will face price hikes up to $1000 a year.

“April 1 is traditionally the day power companies put their prices up, but this year is shaping up to be a real doozy,” says Powerswitch manager Paul Fuge.

Recently, several factors have snowballed to affect annual price rises.

“It’s kind of like a perfect storm – there are four ways the price rises are hitting consumers. One would be bad enough. First, the industry is phasing out low-use power plans, which has given companies permission to double how much they currently charge low users for having electricity supplied to their home.

“Second, people with a gas connection will also be affected by gas companies getting the green light to charge more for supplying gas, to recoup some of the cost of their infrastructure.

“The biggest losers will be low-use dual-fuel consumers – consumers who use lower than average amounts of electricity who are also gas users.

“Finally, the actual prices of both power and gas used is also going up for a lot of people, as we’ve seen in letters notifying consumers of prices changes taking effect from April 1.”

Power prices are the latest cost increase to slam consumers. The latest data from Consumer’s Sentiment Tracker shows the soaring cost of living is New Zealanders’ top concern.

Consumer chief executive Jon Duffy shared his notification from his retailer, which shows it’s not just a matter of a few extra dollars each month. His family’s bill for their Wellington home is one hit by a quadruple whammy of rises.

Their power company will put up the daily charge for supplying power and gas as well as the cost of the power and gas they use.

Jon Duffy.

Within a year they will pay about 25 per cent more, which works out as $850 in total or about $70 a month.

“The extent of the price rise this year has caught me off guard. I’ll be checking Powerswitch to see much I can save by switching to another company,” says Duffy.

“By switching providers, you keep the power companies on their toes, and they can give you competitive rates to nab you as a customer,” says Fuge.

“Unfortunately, there are no incentives to being a long-term customer, so you are best to switch and save yourself the dollars.”

Check how much you can save by switching on Powerswitch.

Updated power prices will be available from Monday, April 4.




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2 Comments

There goes the benefit increase today

Posted on 01-04-2022 16:25 | By Kancho

Already thought the high inflation and the fuel would have taken any benefits increases before anyone gets them but this should just about do it for sure. Of course the high city council rate increases will also take more and thereby increase rents too. It that why it’s called April fools Day ? Selwyn likes to think in dollars a week not percent rate changes as if by magic it makes it palatable. I just read an article this morning about people being priced out of their cities .

Perfect storm......

Posted on 01-04-2022 16:11 | By The Professor

It’s a shame the perfect storm isn’t pushing wages and salaries up also.....and I mean those other than the minimum and living wages!!

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