Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Cheaper electricity bills from new regulation

Cheaper electricity bills from new regulation

Low power users are now saving between $25 and $96 a year on their electricity bills because of regulations introduced by the government that require companies to offer low fixed charge tariffs, Energy Minister Trevor Mallard said today.

"This policy is designed to help low power users and low income earners, including pensioners, to save on their power bills, and it's working," Trevor Mallard said.

"The regulation came into force last October, and now over 30 percent of domestic consumers are enjoying lower electricity bills which is great news.

"I would urge people who don’t use much electricity, to check out whether they can save money by switching to this option. Retailers are required by law to offer it to all domestic customers in their primary place of residence.

"Customers can easily check their plan options on www.powerswitch.co.nz, or simply phone their power company or other power companies operating in their area to discuss whether they would be eligible.

"Savings vary from region to region and depend on consumption levels, but customers on low fixed charge tariff options can expect to save an average of $25 to $96 per year. For example, a customer using 6,000kWh per year in the Thames Valley region could save $88. (see attached list for savings per retailer and region)

"Under the regulation, the low fixed charge option must have a fixed daily charge of no more than 30 cents per day (excluding GST, after the deduction of prompt payment discount). The low fixed charge tariff option must also be cheaper for a consumer using less than 8,000kWh per year compared to the similar standard tariff option.

Background: The low fixed charge policy used to be voluntary but overall compliance was less than 50 percent. So the government introduced the Electricity (Low Fixed Charge Tariff Option for Domestic Consumers) Regulations 2004 on 1 October 2004 to make compliance compulsory.

Compliance is monitored and enforced by the Electricity Commission. A recent survey by the Ministry of Economic Development shows compliance is 97 per cent for lines companies and 94 per cent for retailers. Most non-compliance is of a minor nature, and is being followed up.

Some retailers are exempt from the regulation, such as homes on “closed” tariff options or retailers operating in certain areas (such as the remote areas in the Marlborough Sounds).

See chart here.
http://scoop.co.nz/stories/PA0506/S00286.htm

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Supreme Court: Worksafe Decision On Whittall Pike River Prosecution Unlawful

The question in issue on the appeal was whether WorkSafe New Zealand acted to give effect to an unlawful agreement of this nature when it offered no evidence on charges against Peter William Whittall for breaches of the Health and Safety in Employment Act 1992...

The Supreme Court... has found that the decision to offer no evidence was made under an unlawful agreement to stifle prosecution. It has granted a declaration to that effect. More>>

 

Cullen To Chair: Tax Working Group Terms Of Reference Announced

Finance Minister Grant Robertson and Revenue Minister Stuart Nash today announced the Terms of Reference for the Tax Working Group and that the Group will be chaired by Sir Michael Cullen. More>>

ALSO:

Gordon Campbell: On The New Pike River Agency (And The Air Strike Wing)

Much of the sympathy the public still feels for the families of the Pike River miners has been sustained by the sense that the previous government – let alone the mining company and the processes of receivership and litigation – has never dealt honestly, or fairly, with them. More>>

ALSO:

Not Going Swimmingly: Contractor Cut, New Dates For Christchurch Sports Centre

“As an incoming Minister, I have been conducting a thorough review of progress on the Anchor projects and to learn of a $75 million budget blowout on this project was very disappointing..." More>>

ALSO:

Tertiary: Allowances, Loan Living Costs To Get Boost

“From 1 January, student allowance base rates and the maximum amount students can borrow for living costs will rise by a net $50 a week,” says Education Minister Chris Hipkins... further adjusted from 1 April 2018 in line with any increase in the CPI. More>>

ALSO:

Foreign Affairs: Patrick Gower Interviews Jacinda Ardern

Prime Minister Jacinda Ardern says discussions have already begun on how to bring climate change refugees into New Zealand under a Pacific seasonal employment plan... More>>

ALSO:

Gordon Campbell: On The Centre Right’s Love Of ‘Nanny State’

You’d almost think it was 2005 again. That was a time when the rugged individualists of the centre-right were being beset by government regulations on the nature of light-bulbs, the size of shower heads, the junk food available at school tuck shops and other such essentials... More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election