Right now, there's a Government regulation making many low income households pay for the electricity of better-off families.

It's called the "low fixed charge regulation", and it penalises large households with a higher fixed daily rate for power. Kiwis should hope to see it axed when the Government responds to its independent Electricity Price Review this month.

The regulation was set in 2004 with good intentions — the thinking went we should reward those who conserve power and disincentivise heavy users.


But the regulation actually disadvantages households which can least afford it.

For example, a big family in an