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Home / New Zealand

Power prices rise faster than inflation

By Gary Farrow
APN / NZ HERALD·
13 Aug, 2015 01:00 AM2 mins to read

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"The electricity market is broken when lines charges are now up to 40 percent of a household's electricity bill and rising fast." Photo / Getty Images

"The electricity market is broken when lines charges are now up to 40 percent of a household's electricity bill and rising fast." Photo / Getty Images

The annual 'Energy in New Zealand' publication shows residential electricity prices have risen by 3.8 percent in the year to March 2015. According to Statistics NZ, inflation in the same period has amounted to only 0.1%.

The Green Party says this disparity will be putting New Zealand households under increased strain, and energy spokesperson Gareth Hughes argues the Government's approach to the power industry is not working.

"When an essential household cost like electricity is rising so much faster than inflation, it's clear that National's economy is not working for New Zealand households," he says.

"The electricity market is broken when lines charges are now up to 40 percent of a household's electricity bill and rising fast."

The Electricity Authority has proposed the raising of residential lines charges for some households by an additional amount, at the same time decreasing charges for the Tiwai Point smelter and other industrial operations.

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Hughes says the Government needs to tell the Electricity Authority to reconsider its suggestion.

"We need to be embracing new technologies and options like distributed generation to save customers' money by avoiding the need for investment in distribution networks."

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