Social agencies say some older people are rugging up to avoid turning on their heating to save money. Photo / Getty Images
Social agencies say some older people are rugging up to avoid turning on their heating to save money. Photo / Getty Images
A Rotorua pensioner says it’s “shocking” some older people are going without heaters in the middle of winter as they struggle to pay for power amid the cost of living crisis.
It has prompted fears their health will suffer and they will be more vulnerable to winter ills and chills.
The pensioner, who did not want to be named, said he saved money because his home was powered by solar energy but he felt for his peers who had to scrimp on power because they could not afford it.
“It’s shocking. They work all their adult lives and get treated like second-class citizens.”
Frugal by nature, he said he conserved power by running appliances during daylight hours to use the solar, air drying clothes outside, smart lights, and using a wood fire to heat the house and cook.
Age Concern Rotorua manager Rory O’Rourke said although its members were receiving the Winter Energy Payment it was not “making a hell of a difference with the increase in power charges”.
“Once upon a time, they didn’t think too much about power. Now they are thinking about when they are going to turn the heater on or use the drier.”
He said some were trying to keep their power bills as low as possible and if they could find another way of keeping warm like using blankets or going to bed early they would.
Age Concern Rotorua manager Rory O'Rourke. Photo / NZME
“There is certainly a health risk though because if they are cold that can lead to all sorts of things. If you are over 65 and pneumonia strikes it can be quite devastating.”
Rotorua Budget Advice manager Pakanui Tuhura said everyone should be concerned because with age came medical and physical issues that the body found hard to shake off.
He urged families to visit older relatives regularly to make sure they were okay.
Bay Financial Mentors manager Shirley McCombe said the phasing out of low-user power tariffs particularly impacted older people living alone, she said.
“I personally have met with older people in Tauranga that don’t have power in their home because it is an expense they believe they cannot afford.”
Bay Financial Mentors manager Shirley McCombe.
She said some had poor credit scores and struggled to find a provider. Others had prepaid power but did not have the money to top them up so may go for days without any electricity.
“They may be living on their whenua, in homes that are not connected to electricity. There are many whānau living in caravans.”
To cope they often bought food daily or takeaways, ran generators, cooked on gas cookers, or barbecues, stored milk in chilly bins and used candles.
“It is heartbreaking, and often these are the people least visible to others and most reluctant to engage.”
Toi Te Ora Public Health medical officer of health Dr Gregory Evans said cold houses impacted physical and mental health.
“It is unpleasant and stressful to live in a cold home and it can negatively impact wellbeing.
“Cold homes increase the risk of respiratory disease, infections, heart attacks and strokes. Older people are also more likely to have chronic conditions that contribute to their risk of severe disease or hospitalisation from pneumonia or influenza.”
He said the flu vaccine was free for those aged 65 and over, and for Māori and Pacific people over 55. The Covid vaccine was free for everyone aged 5 and over.
Minister for Seniors Ginny Andersen all superannuants received the Winter Energy Payment automatically and a couple receiving NZ super would receive an extra $63.64 a fortnight.
This was in addition to superannuation increasing by 7.22 per cent this year, meaning a couple would receive $102.84 more a fortnight.
“No one should fear catching a winter illness because they can’t afford to turn the heating on,” she said.
Andersen said under the Government’s Warmer Kiwi Homes Programme more than 110,000 installations of insulation and heaters had already been done.
Minister for Seniors Ginny Andersen. Photo / Mark Mitchell
Figures from the Ministry for Social Development show $2.5 billion had been spent on the Winter Energy Payment from 2018 to 2022. It was designed to help eligible clients with the cost of heating their homes over the winter months.
The Winter Energy Payment is an extra payment to help eligible beneficiaries with the cost of heating their homes over the winter months.
Under its hardship assistance grants in 2022, the ministry paid $40.4 million to pay for electricity and gas debt compared to $39.9m in 2021. These grants have to be paid back and for the first three months of this year, $8.7m was paid out.
Ministry for Social Development client service delivery group general manager Jayne Russell said depending on a person’s circumstances, Work and Income may be able to help with any urgent power, gas, water bills, or the costs of heating.
“There is a range of support available and people don’t have to be on a benefit to qualify. If you have extra power, gas or heating costs because of your disability or health condition, we may be able to help you pay this as part of a Disability Allowance.”
An Electricity Authority spokesperson said the electricity market was incredibly complex.
There were locational factors that influenced the way power flowed along the grid which could result in differing prices for different locations.
A Ministry for Business, Innovation and Employment spokesperson said electricity prices were rising in nominal terms but falling in real terms.
The nominal price was the price at the time it was recorded. Real prices accounted for the effects of inflation over time, she said.
Nominal prices increased by 2.51 c/kWh on average from March 2018 to March 2023. Real prices fell 2.87 c/kWh over the same period.
“This means that electricity prices are rising more slowly than overall inflation.”
Powerswitch manager Paul Fuge said an analysis of 42,000 user results over winter 2022, showed the median savings through changing power companies on Powerswitch was $385 per annum.
It had 17 power companies on its site although there were about 40 nationally.
“The wholesale electricity price is determined via the market. Retailers buy on the wholesale market and then determine their own price at which they sell to their customers.”
Carmen Hall is a news director for the Bay of Plenty Times and Rotorua Daily Post, covering business and general news. She has been a Voyager Media Awards winner and a journalist for 25 years.
