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Home / New Zealand

Power price rises hurt elderly

By Cassandra Mason
Wairarapa Times-Age·
21 Jul, 2013 08:27 PM3 mins to read

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Elderly Wairarapa residents are struggling with power prices that have jumped $77 in a year, with many not heating their homes because it's too expensive.

But Grey Power is negotiating a deal it hopes will provide discounted power to senior citizens.

The Ministry of Business, Innovation and Employment's Quarterly Survey of Domestic Power Prices shows residential power prices in all regions have increased in the year to May.

The increases range from $17.19 in Dunedin to $182.36 in Gisborne. The national average increase was $65.

The study, which relied on Electricity Authority data, was based on an average household using 8000kWh per year, close to the nationwide average residential consumption.

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Wairarapa Grey Power president George Groombridge said rising power prices were a "struggle" for elderly residents.

Pensioners were going to bed early to keep warm, instead of spending money on heating their homes, he said.

One elderly woman had even been using her oven to heat her house, believing it would be cheaper to run than a heater.

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Average power prices in the Wairarapa and Hawkes Bay jumped $77 in the past year, $12 more than the national average.

Separate figures for Wairarapa were unavailable.

Wairarapa Energy Online customers with Powerco lines company suffered the biggest price hike of $189 over the past year. This represented an 11.8 per cent increase in retail power costs from May 2012.

Part of this rise was due to an $8 increase in lines charges.

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Meridian customers with Powerco enjoyed a stay in power prices, despite taking an $8 lines charge increase.

According to Electricity Authority figures, 45,578 Wellington and Wairarapa residents switched power companies in the past year.

Mr Groombridge wanted to know why Wairarapa price hikes were so much higher than the national average. "I can't see that we are any different from any other city area."

Food was the first thing elderly people cut back on when faced with another price hike and pressure to change power companies usually didn't end in a better deal.

"We are now advising all our members to switch everything off before they go to bed."

Grey Power is trying to negotiate a national deal for cheaper power for its 64,000 members amid reports some elderly are not heating their homes because it's too expensive.

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But Mr Groombridge doubted it would have a significant impact.

"I've got a concern that [the deal] won't alter the situation very much. In the long run, [power companies] don't listen very much to the elderly. They think 'they're getting their superannuation, they can pay their bills', and that's it."

Grey Power's discount power project is headed by its national office, which is advising members in anticipation of the deal to avoid signing up for long-term contracts.

National president Roy Reid said the negotiations were commercially sensitive and he was unable to name the power company involved.

He hoped to make an announcement in the next few days.

Mr Reid said it was the first time Grey Power had entered into negotiations of this magnitude.

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"We think it will be in the members' interests."

Electricity Authority chief executive Carl Hansen said there was a growing number of people changing power companies thanks to greater awareness and to pitching from retailers.

By the numbers (Price increases May 2012 to May 2013)

National average: $65

Wairarapa/Hawkes Bay average: $77

Biggest local increase: Energy Online with Powerco: $189

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Smallest local increase: Meridian with Powerco: $0 Source: MBIE - figures based on an average household using 8000kWh per annumGrey Power hope to seal discounts

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