Consumer NZ expects power prices to increase by about 5% this year.
It’s after households were already hit with a 12% increase in power bills last year.
The site recommends budgeting for an increase in power bills from the end of April.
Rising power costs: Simple switches that could save households hundreds – The Front Page
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Customers can expect line charges alone to climb by an average of $5 a month through to 2029.
Powerswitch manager Paul Fuge told The Front Page that bills are rising because of an increase in lines charges.
“That’s the cost of delivering power to your house, and it’s the amount on your bill that stays the same regardless of how much power you use,” he said.
At the same time, hydro lakes are very full and wholesale prices should be low, but those cheaper generation costs are not offsetting higher lines charges because of how the electricity market is structured.
“It’s been very wet. Hydro lakes are full to the point they’re having to spill water now. So that should be offsetting the cost of the increase in lines charges, and that’s not happening,” Fuge said.
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“That’s due to the way that our market’s working, or not working, as we keep saying.
“That needs to be looked at as to why, in a country with such a predominance of low-cost, renewable energy, why our prices keep climbing,” he said.
Fuge said shopping around and switching retailers or plans could cut bills by hundreds.
Moving to time-of-use plans and shifting big loads – live EV charging, hot water use, and some appliances – into low‑cost, off‑peak periods can cut bills by roughly 20% in some households.
“This is an election year, so we think energy will really be a hot topic ... Surveying has shown us that 67% of New Zealand consumers want the Government to take action.”
Listen to the full episode to hear more about:
- Escalating household costs
- Market and regulatory changes
- policy and future investment
- economic and social harm.
The Front Page is a daily news podcast from the New Zealand Herald, available to listen to every weekday from 5am. The podcast is presented by Chelsea Daniels, an Auckland-based journalist with a background in world news and crime/justice reporting who joined NZME in 2016.
You can follow the podcast at iHeartRadio, Apple Podcasts, Spotify or wherever you get your podcasts.