Power prices should fall, consumer watchdog says
Power prices should be falling faster than they are, a consumer advocate says.
Government data shows that in the year to March the average power bill for a New Zealand household was $2077. In 2015, it was $2182, when adjusted for inflation.
The Electricity Retailers Association hailed that as a $120 per year saving over that period. But the average amount used by a household has decreased from 7279 kilowatt hours in 2015 – or 29.9c per kWh – to 7141 kWh in the year to March this year, or 29c per kWh. That means the average price paid by households per kWh has dropped by less than 1 cent.
An association spokesman said it agreed that a drop in consumption was behind the fall but the per-unit price of power was the lowest it had been since 2013, in real terms. He said New Zealand’s power was the 12th cheapest in the OECD.
Statistics NZ figures showed, over the year to June this year, household electricity prices rose 1.4 per cent.
Jessica Wilson, head of research at Consumer, said that in other markets where there had been a drop in demand, prices had fallen significantly. That had not been experienced in New Zealand, she said.
Retailer Electric Kiwi chief executive Luke Blincoe said prices were not coming down ‘‘at all’’.
In August, 42,000 households switched to a new power provider, the second-highest monthly figure on record. ‘‘It is good to see more and more households engaging with their power plan and making sure they are on the right plan for them,’’ said Electricity Retailers Association chief executive Cameron Burrows.
He said there was growing competition between 39 companies.
Burrows said it was not only the price that mattered – people might value things such as a fixed term, apps offered or other services.
But Wilson said there were still a lot of people who had limited choice because of bad credit, or previous payment problems, which made it hard to get an account with another power provider.
In August, 42,000 households switched to a new power provider.