Electricity prices for Bay of Plenty households among New Zealand's highest

Bay of Plenty residents are estimated to be among the highest-paying electricity users in the country.

A social support provider says electricity prices are a "huge challenge" for many and power bills are the second biggest poverty-related problem in the region, behind paying rent.

Ministry of Business, Innovation and Employment data from May provides estimates of how electricity price changes could affect domestic households.

It estimated Tauranga consumers were forking out $0.34 per kilowatt-hours (kWh), an increase of 17 per cent on the May 2011 estimate.

Over the same period, prices were estimated to have increased by 22 per cent in Rotorua and Taupō, and 10 per cent in Whakatāne.

The residential cost for electricity in Tauranga, Rotorua and Taupō was more expensive than other main New Zealand centres Auckland, Hamilton, Wellington, Dunedin, and Invercargill.

The average price per kWh for New Zealand households last year was $0.29, an Electricity Retailers' Association of New Zealand spokesperson said.

The main reason electricity prices had increased over the past decade was because of inflation, they said.

"When you translate prices to what families pay each month for their electricity, the average household spent $2118 a year on electricity in 2020.

"Although it can feel like power bills keep going up, especially in winter, MBIE data shows after inflation the average annual bill is $140 lower than it was in 2014."

The spokesperson encouraged Kiwis to shop around before settling on an electricity provider.

"We have a very competitive retail market, and it's easy to compare and switch. By comparing plans, some households can save $200 a year."

Most of the Bay of Plenty's electricity was locally produced, either from geothermal, the central North Island's hydro schemes, and at Huntly, the spokesperson said.

Te Tuinga Whānau Support Services executive director Tommy Wilson said electricity prices were a major problem for low-income families.

He had heard of children waiting outside schools during the lockdown, eager to be allowed inside a classroom because it was warmer than their own home.

"What we're finding is that this is the most challenging time of the year given the cold," Wilson said. "It's a huge challenge, a growing challenge.

"I don't think the ordinary New Zealander really understands what poor really is — it blows me away.

"People always ring us up asking how they can help; they can help by dropping some wood around to some old people or donating a couple of nice warm blankets."

Te Tuinga Whānau Support Services executive director Tommy Wilson. Photo / George Novak

Rotorua Budget Advisory Service manager Pakanui Tuhura said there had been an increase in electricity prices over time but they had not been sudden or sharp increases.

The service hadn't noticed any increase in requests for help around paying bills, Tuhara said.

"That's not to say that they are not experiencing issues it just means that payment of electricity is dealt with as a matter of course when we meet with clients," he said.

"We always recommend for clients to shop around and choose the plan that is appropriate for them."

It was important people read their meter often to catch an unexpected usage increase, Tuhara said.

Insulation and ventilation were required for a warm home, so taking advantage of discounted offers was key, and bubble wrap on windows almost worked as well as double glazing, Tuhara said.

Rotorua Budget Advisory Service manager Pakanui Tuhura. Photo / Stephen Parker

Age Concern Rotorua manager Rory O'Rourke said electricity bills did not appear to be a problem because of the Winter Energy Payment.

In his three years with the group, just one person had come forward.

"I think most of our numbers are really quite happy with the subsidy we get paid throughout the winter months. That little bit extra seems to cover the cost of heating," O'Rourke said.

The subsidy — the Winter Energy Payment — is an extra payment to help with the cost of heating over winter and is automatically paid to those who are eligible, the Work and Income website says.

Age Concern Rotorua manager Rory O'Rourke. Photo / Stephen Parker

MBIE published the data in its Quarterly Survey of Domestic Electricity Prices (QSDEP) earlier this year.

The QSDEP is derived from information taken from electricity retailers primarily and is based on sales of delivered electricity.

"The QSDEP monitors tariffs for around 40 towns and cities across New Zealand that are publicly advertised in the retail electricity market on a particular date," an MBIE spokesperson said.

"This provides an indication of how recent price changes may affect households. It does not, however, reflect what customers have actually paid for electricity in a particular period.

"This is because the QSDEP only models one type of customer in each city or town when in reality, consumption and pricing plans vary significantly across households."

The latest quarterly energy data is due this afternoon and will include updated sales-based data for the June quarter but only at a national level, not regional.