Electricity prices a ‘huge challenge’
Bay of Plenty residents estimated among highestpaying in NZ
Bay of Plenty residents are estimated to be among the highest-paying electricity users in the country. A social support provider says electricity prices are a “huge challenge” for many and power bills are the second biggest poverty-related problem in the region, behind paying rent.
Ministry of Business, Innovation and Employment data from May provides estimates of how electricity price changes could affect domestic households.
It estimated Tauranga consumers were forking out $0.34 per kilowatthours (kwh), an increase of 17 per cent on the May 2011 estimate.
Over the same period, prices were estimated to have increased by 22 per cent in Rotorua and Taupo¯, and 10 per cent in Whakata¯ne.
The residential cost for electricity in Tauranga, Rotorua and Taupo¯ was more expensive than other main New Zealand centres Auckland, Hamilton, Wellington, Dunedin, and Invercargill.
The average price per kwh for New Zealand households last year was $0.29, an Electricity Retailers’ Association of New Zealand spokesperson said.
The main reason electricity prices had increased over the past decade was because of inflation, they said.
“When you translate prices to what families pay each month for their electricity, the average household spent $2118 a year on electricity in 2020.
“Although it can feel like power bills keep going up, especially in winter, MBIE data shows after inflation the average annual bill is $140 lower than it was in 2014.”
The spokesperson encouraged Kiwis to shop around before settling on an electricity provider.
“We have a very competitive retail market, and it’s easy to compare and switch. By comparing plans, some households can save $200 a year.”
Most of the Bay of Plenty’s electricity was locally produced, either from geothermal, the central North Island’s hydro schemes, and at Huntly, the spokesperson said.
Te Tuinga Wha¯nau Support Services executive director Tommy
Wilson said electricity prices were a major problem for low-income families.
He had heard of children waiting outside schools during the lockdown, eager to be allowed inside a