Electricity: Concerns raised over affordability

The survey revealed some residents and small businesses are finding it harder to pay their power bills.

A survey for the Consumer Advocacy Council shows most consumers are concerned that in the future the electricity industry will not provide a reliable supply they can afford.

The Electricity Consumer Sentiment Survey by Kantar Public surveyed 1026 residential consumers and 500 small businesses between November 25 and December 20 last year.

It's the first in-depth poll of these consumer groups.

Despite being conducted before Cyclone Gabrielle, the survey showed almost two-thirds of respondents were already concerned the country's electricity system would not be resilient to extreme weather events.

While 72 percent of respondents were satisfied with their current provider, 69 percent of residential consumers and 57 percent of businesses surveyed believed electricity would become unaffordable for some people within the next 10 years.

The report showed 42 percent of residents and 28 percent of small businesses found it harder to pay electricity bills than a year ago, and one in 10 reported having experienced payment pressure such as making special payment arrangements or borrowing money to pay a bill.

CAC's chairperson Deborah Hart says Cyclone Gabrielle has shown an urgent need for the industry to invest in strengthening the resilience of the network as climate change resulted in more extreme weather.

But, at the same time, it needs to keep power bills affordable.

"We're in a time of great change as we deal with threats to the network from climate change storm events, and the need to reduce emissions to achieve 100 percent renewable generation."

Hart sysd the investments should not come as a cost to consumers.

"Building resilience can't come at the cost of ensuring electricity remains affordable, particularly now with pressure on household budgets."

Hart says consumers - who are the ones funding the industry - need to be at the front and centre when policy makers and industry players were making decisions on the future of the electricity system.

Lines companies expect to spend billions

Meanwhile, the Electricity Networks Association says lines companies will spend billions of dollars to make sure power networks are reliable.

ENA's chief executive Graeme Peters says an assessment after Cyclone Gabrielle shows an extra $2.1 billion is needed to build resilience in the network, on top of spending on decarbonisation and new customer technologies.

But he says that it will be a balancing act for companies.

"In coming up with those numbers, we immediately are thinking, well, under the law we have to pass those costs onto consumers, so that's something we have to weigh up."

Photo: Vaughn Burgess.

Peters says the investments might lead to higher power prices in the short term.

However, investigations by the association last year shows that while households are expected to spend more money on electricity in the coming years, they will be spending less on other sources of energy such as gas and petrol in the longer term.

He says by 2030, the total household spending on energy would be falling.

-RNZ.

5 comments

Yes

Posted on 22-03-2023 15:05 | By Kancho

Something I have talked about before and been cried down. The power boards were owned by the consumers and they appointed board members who then supplied power to their area. The power grid and generation that supplied them was owned by the government . Simple. Since then much is now in foreign hands and so dividends etc go overseas. As this is profit driven then investment into the grid is slow. The selloff was touted to us that competition would drive prices down but the reverse happened . So our grid has instabilities and prices on supply and demand fluctuates. We need a lot of investment to improve supply both now and the future so I expect power prices will go up substantially. Water will be another as bureaucracy builds with this government who have huge bureaucratic growth everywhere that stops money getting to the frontline, health, education, crime etc


Hmmm

Posted on 22-03-2023 16:46 | By Let's get real

Does anyone believe that the mad rush towards renewable energy is going to be cheaper...? If we can continue to produce it, that is. Wind turbines can only operate between certain wind strengths, hydro depends on rainfall, solar needs good sunlight from the right direction and clean collectors. We need a single small nuclear reactor erected on a small nearby offshore island. Just one as a main energy generator and the other resources as backup for a growing population of 5 million. But there's nobody willing to be pragmatic in this backwater.


Thanks John...

Posted on 23-03-2023 14:46 | By This Guy

National selling our assets to their rich mates really helped us here...


@Kancho

Posted on 23-03-2023 20:11 | By morepork

An excellent post that states it clearly. Like you, I have also been decrying the lack of investment which means if some drunken fool hits a lamp post with his car, thousands of people can be without electricity for hours. There is no redundancy in the reticulation and it is worse than some third world countries I have lived in. It's all very well to talk about spending billions on it; I'll believe it when I see it. Meanwhile, the price of water salami slices upwards. We are supposed not to notice it, but people on limited fixed incomes (like me...) notice everything. I also endorse your comment on this government spending on bureaucracy. Given all the carnage with climate and Covid it is hard to see how we can afford to be doing what we need to... There will be a reckoning.


@Let's get real

Posted on 25-03-2023 13:08 | By morepork

Congratulations on having the courage to state an unpopular idea, that makes perfect sense when investigated fully. (I have been advocating this for years but "everyone knows" that nuclear power is "bad".) A single modern nuclear fusion reactor, on an offshore island, could meet our power needs for at least 100 years, WITHOUT requiring fuel and with NO waste. But, it IS expensive initially. (The costs are recouped over around 20 years...) France has been using nuclear power with perfect safety for over 30 years and that is with fission reactors, which are cheaper, but more "dangerous". France even exports surplus electricity to the UK. Windmills are ugly and dangerous for birds and the environment, solar power is unreliable (although storage for it is improving), rooftop ducted fans are more viable, but safe nuclear would be ideal.


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