Power hikes set to cost an extra 5%

Published: 6:57PM Wednesday February 08, 2012 Source: ONE News

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Energy users can expect to pay more as power companies look to offset the cost of upgrading the national network. 

Some areas in New Zealand will be harder hit than others when grid operator Transpower rises the price it charges to electricity retailers by 20%.

Residential customers in Auckland and Rangioria can expect their power bills to increase by up to 5% in April, while Wellington and Christchurch users can expect a 3% price hike and Nelson 1%.

Consumer watchdogs are calling the increases unjustified and recommend customers question the cost hikes with their power provider. 

"Transmission charges are only about 8% of the average power bill," Major Electricity Users Group advocate Ralph Matthes said.

"The transmission charge component should only increase by about 2% so a 5% increase looks way over the top."

Matthes is urging consumers to ask their retailer about the size of the increase.

One Christchurch resident told ONE News she will struggle to pay for the extra power cost on her low income.

A 5% price hikes will cost low-power users an extra $70 a year and nearly $100 for high-consumption households.

"I budget each week and I don't know where the extra money's going to come from," she said.

"I've got a new grandson in the house and that's going to be extra heating, so I don't know what I'm going to do."

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