Power prices rising

Kiwis face more power price rises, warns Consumer NZ.

But Drive Electric chair Mark Gilbert doubts the electricity price increases will cause any issues for EV users.

“If the current price for electricity is equivalent of 0.30-40c per litre, then an 8% increase means an additional 2c-3c per litre,” he says.

“Not enough to slow things down.”

ChargeNet is also adjusting pricing, but Gilbert says he hasn’t yet considered the impact of that change – outlined in EVs and Beyond.

EV users can take advantage of some power company price plans, use smart charging and off-peak lower rates, charge up at a few free public stations, and use solar and wind electricity generation – usually involving storage batteries.

Contact Energy’s electricity customers will see their bills increase by about 8% from November while Genesis is planning to increase its electricity prices for residential customers in January 2023, Consumer NZ adds.

From November, customers of Genesis and Contact Energy will see their gas bills increase too, by an average of about 11%, it says.

“The combined profits of Genesis, Meridian and Mercury (to the end of June 2022) totalled $1.35 billion, which is more than double their combined profits from the previous year.

“These significant profits include gains from one-off sales and favourable forward electricity market movements. However, Consumer believes the level of profits suggest there is scope for these retailers to sharpen their pencils on price.”

Consumer communications and campaigns head Gemma Rasmussen says: “Some of the larger retailers are continuing to make lofty profits and are increasing their power pricing to customers at a time when many New Zealanders are struggling financially.

“We know from Powerswitch data that some of the lowest prices are being offered by the smaller retailers. There’s room for larger retailers, especially the well-established players making large profits, to sharpen their pricing.”

Consumer’s latest Sentiment Tracker survey found New Zealanders have rapidly lost trust in the energy sector.

“In June 2021 we began tracking consumer sentiment across all sectors,” Rasmussen says.

“The energy sector has seen a marked decline in trust, with only the supermarkets, fuel industry and the Government faring worse.”

The watchdog’s annual power company satisfaction survey found the bigger players in the market continue to disappoint customers. Contact, Genesis, Trustpower and Mercury all failed to impress, it says.

“We want to see retailers upping their game across the board – improve their pricing, and customer service too. If they manage that, perhaps consumers’ trust in the industry will improve.”

Analysis from Consumer has found that potential savings from switching electricity providers has gone up 24% in the past year, with the median saving now sitting at $385 a year.

“We really encourage people to use Powerswitch to compare plans and check if they could get a better deal.”