Consumers urged to ensure they’re getting the best deal on electricity

As cold weather continues to grip the country amid uncertainty about power supplies, consumers are being urged to make sure they’re getting the best deal on their electricity.

The latest Stats NZ figures show electricity prices have been rising more slowly than incomes over the past 10 years, after increasing twice as fast as incomes over the previous 10 years.

Electricity prices rose 3.1 per cent in the year to March (compared to a 4.1 per cent rise in incomes) and 20.8 per cent in the past 10 years (compared to a 27.1 per cent rise in incomes).

Prices increased 66.3 per cent over the previous 10 years (compared to a 27.3 per cent increase in incomes for that period).

Electricity prices rose 3.1 per cent in the year to March (compared to a 4.1 per cent rise in incomes). Photo / 123RF

Consumer NZ campaigns adviser Abby Damen said electricity prices fluctuate frequently and there is a lot of variation between plans and providers.

She said Consumer NZ’s Powerswitch website, which allows people to compare different power options for their location, has recorded 24,000 pricing updates in the past 12 months.

The cheapest price on the site in March was $2866 per year on average, while the most expensive was $3372 - a difference of $506.

”We really encourage people to regularly review that the power plan they’re on is the best for their needs. We found people could save about $400 on annual power costs,” Damen said.

The Consumer Advocacy Council - a group that advocates on behalf of consumers and small businesses for changes in the energy sector - estimates 110,000 households can’t currently afford to heat their homes.

A Kantar survey it commissioned last year found 65 per cent of residential consumers and 28 per cent of small businesses are concerned about power bills putting pressure on finances.

Council chairwoman Deborah Hart told Newstalk ZB electricity consumers want affordability, sustainability and resilience.

”It’s up to the electricity sector, the regulators and Government to deliver that, because electricity is an essential service, and we all need it.”

In addition to comparing prices and plans on the Powerswitch website, Consumer NZ also recommends other simple changes to save on power bills. They include keeping showers to no more than five minutes, setting heat pumps to no more than 21C, doing cold laundry washes and turning appliances off at the wall.