Household power users hit hardest

Published: 10:59AM Saturday July 12, 2008 Source: Newstalk ZB

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Statistics show domestic electricity users are getting hit harder by power price increases than commercial and industrial users.

The July 2008 figures in the Energy Data File, prepared by the Ministry of Economic Development, shows residential users have endured a 4.8% price increase each year since 2000.

Thatcompares to a 1.4% increase for commercial users each year, and 2.8% for industrial users.

Energy analyst Molly Melhuish says the figures shows domestic users are subsidising bigger ones.

She says these are real figures, and not just a generic complaint we are paying too much.

Melhuish says prices are currently rising 5% faster than inflation.

An analyst for the Domestic Energy Users Network, Melhuish has some solutions.

She says they include taking some of the windfall profits from rising domestic prices and re-investing them in the houses of low income consumers to reduce their power bills.

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