The percentage of income that went into power bills for some of Anglican Care Centre's financial mentor Alyson Maioha's clients was as high as 25 per cent.
Photo / Michael Cunningham
The percentage of income that went into power bills for some of Anglican Care Centre's financial mentor Alyson Maioha's clients was as high as 25 per cent.
Photo / Michael Cunningham
Northlanders potentially saved nearly $1.7 million by switching electricity companies in just one year but Powerswitch says a lot more households aren’t shopping around, especially during winter.
Figures from Electricity Authority show 4406 households in Northland changed power companies in the 12 months to the end of June. When multipliedby the median national savings figure of $385, they saved $1.69m.
The stats exclude switches that happened when people moved houses, even when they stayed with the same power retailer. Ministry of Business, Innovation and Employment (MBIE) data last year showed power prices in parts of Northland were significantly higher than in Auckland.
Powerswitch manager Paul Fuge said Northland’s household switch rate of 4.95 per cent was below the national average of 6 per cent which was not ideal, given the region’s lower average income and high deprivation.
Powerswitch is a free and independent comparison service run by Consumer New Zealand that helps people check they’re on the best electricity plan to meet the needs of their household.
“Maybe households in areas got declined by certain retailers because they have missed their payments previously. There’s also a strong aversion to changing power retailers because people think something may go wrong,” Fuge said.
“There’s also a mentality that power bills are like taxes and you have to pay for it. People are going cold by turning off heaters and stuff but they don’t change power retailers.”
He said power companies would start acting competitively by keeping their charges low if more households shopped around for better and cheaper deals.
“The product people get from all providers is identical, so why would you pay more? It’s a paradox because that doesn’t happen with other products where if you get two products with different prices, you’ll buy the cheaper one.
“That tells us the market is not working very well. People are more worried about the consequences of changing power companies than the gains,” he said.
Northpower started the Home Energy Assessment Programme in January last year with funding from MBIE) and in partnership with Ecobulb.
Northlanders saved nearly $1.7 million in just one year by switching power companies.
Photo / Michael Cunningham
Under the programme, assessors go into homes and advise families on how best to save on power by comparing electricity prices and giving energy-efficient tips on heating, hot water and lighting.
Northpower community partnerships lead Arriane Christie said 1722 assessments were completed by the end of July this year, and 18,354 LED light bulbs and 1637 low-flow shower heads were distributed.
It resulted in an estimated annual power savings of nearly $1.5m for those households at an average of $846 per house, she said.
Ecobulb managing director Chris Mardon said there was a lack of awareness in Northland about the importance of switching power companies.
“Ironically, homes that do switch are wealthy homes and those less likely to switch are low-income families,” he said.
Whangarei Anglican Care Centre’s financial mentor Alyson Maioha said the percentage of income that went into power bills for some of her clients was as high as 25 per cent.
“Also that many of our clients have the power redirected from their benefits before they are paid, to protect their overheads. We are also starting to see solar payments coming up as power.”
Apart from generating conversations on how struggling families could save power, she said the centre also handed out " Energy Efficient Tips” pamphlets supplied by Northpower.
Whangarei Budgeting Service financial mentor Shannon Phillips said, based on an average annual income of $50,000, the percentage spent on power bills for a household of three was 12 per cent.
“Power continues to rise along with everyday expenses and the combination has had a snowball effect on our clients further putting more and more tangata under financial strain.”
She said this was reflected in the service’s one-month waiting list for appointments.
* Check your power plan to make sure you’re on the cheapest deal ($300-$400)
* Set your heat pump to a maximum of 21deg C ($320)
* Switch off appliances at the wall when not using them ($100)
* Limit your showers to five minutes ($260 per person)
* Change your washing machine settings to cold wash ($50)
Imran Ali is a senior reporter who does general news reporting at the Advocate after more than two decades covering courts. He also takes a keen interest in rugby.
