Huge power bills force schools to cry 'help'

By PAULA OLIVER and ANGELA GREGORY

Schools shocked by huge power bills have called on the Ministry of Education to investigate their plight.

Wellington High School's bill for last month hit $20,125 - 196 per cent more than its June bill of $6786.

Electricity retailers are switching schools and businesses to the volatile spot market.

Prices on the spot market are soaring as concern mounts about low hydro lake levels.

Wellington High principal Prue Kelly told the Herald yesterday that the big bill was a surprise when it arrived last Friday. The increase could not be budgeted for.

The most worrying factor was that the school had been closed for two weeks of holidays last month.

Kevin Wilson, the ministry's senior manager of resourcing, yesterday confirmed that he had been contacted by schools about power bill spikes.

He said the ministry was investigating and should know where it stood in a few days. Wellington and some parts of the South Island are the first areas to receive harsh evidence of the electricity shortage.

Hospitals are also feeling the pinch.

One private South Island non-profit organisation which cares for the elderly is understood to have received a $40,000 bill for last month, compared with $8000 in June.

The facility could be forced to close.

Oriental Bay landmark Hotel Raffaele said it had refused to pay its latest bill, which leaped to $11,000 from a monthly average of $2300.

Wellington High, with 900 students, was a TransAlta customer until On Energy took over its account.

Mrs Kelly said the school had been under a contract, but somehow it was lost about the time of the switch.

In June, On Energy told the school it was being transferred to spot prices - there was no other option.

Mrs Kelly said she had contacted Meridian Energy and TrustPower, but both refused to take on the school's account.

"I honestly don't know what we can do.

"We've almost got all of our income in for the year, which is a scary thought.

"Perhaps someone rich will come along and sponsor our electricity."

She said the school was saving power, but it would not be enough. She understood the ministry could increase its financing allocation, but said that was usually reserved for cases where student numbers had grown.

Genesis Power bought On Energy's 290,000 North Island customers last month.

Genesis spokeswoman Donna Baker confirmed it had switched eight schools to the spot market.

They were all large colleges, but she was not sure where all were located.

"The ones that have come to my attention are from Wellington."

Sacred Heart College in Wellington has also been told it is now on spot market pricing.

Board of trustees member Sonja Barneveld said the school was worried but hoped the ministry would pick up some of the tab.

She knew of other Wellington schools in the same situation.

"The power bills will be starting to hit them now."

School Trustees Association president Chris France said he had not yet heard of problems with power price rises.

He understood that if schools were hit by extraordinary costs, the ministry would step in with extra money.

"Few schools have money put aside to cater for this sort of thing. They would end up in deficit if they had to pay."

Mr France said he would be very concerned if the power price rises were a direct hit on school budgets.

"They don't have the flexibility of commercial operations."

* Power savings throughout the country on Monday were 8 per cent. A target of 10 per cent over 10 weeks is needed to avoid blackouts.

Feature: Electricity

Energy Efficiency and Conservation Authority