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Electricity fixed charges reduced

Electricity fixed charges reduced

The impact of the Government’s low fixed charge policy in reducing fixed daily charges faced by lower users of electricity is highlighted by new electricity statistics recently released, says Energy Minister Pete Hodgson.

Electricity Information Disclosure Statistics 2002 is compiled by the Ministry of Economic Development. It shows that between August 2000 and August 2002 the national average fixed charge paid by low users of electricity reduced by 59% from $275 per year to $112 per year.

The low fixed charge policy, formulated in 2000, requires all electricity retailers to offer a tariff option that has a fixed daily charge no higher than 30 cents a day, plus GST. “Low fixed daily charges allow small domestic consumers, such as pensioners, to have greater control over their power bills, and also provide incentives for consumers to use power efficiently”, Mr Hodgson said.

The statistics also show that the national average retail charges for domestic consumers have remained essentially unchanged between August 1999 and August 2002, in real terms. Commercial consumers’ national average retail charges have reduced over the same period.

Historically, commercial charges were higher than domestic charges. Commercial charges and domestic charges have converged so that they are now similar for similar levels of consumption.

Electricity fixed charges reduced - web link

The report is available at: http://www.med.govt.nz/ers/inf_disc/disclosure-statistics/

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