1 Oct 2013

Average household power bill predicted to fall

9:58 pm on 1 October 2013

Infratil, the company which controls one of New Zealand's five electricity generators and retailers, predicts the average household bill should fall by between $15 - $20 per month within the next couple of years.

Infratil executive Tim Brown says trading in futures contracts on the Australian Stock Exchange suggests wholesale electricity prices over the next couple of years should be a couple of cents lower per kilowatt hour than they have been over the last few years.

But he says events such as a lack of rain could change those forecasts.

Mr Brown says there are also events that could push prices down further, such as the possible closure of the Tiwai Point smelter.

Providing electricity lines companies and Transpower, the national grid operator, don't increase their charges, Mr Brown says that fall should be reflected in customers' power bills.

Transpower has said its charges should level out from here.

Infratil owns just over 50% of TrustPower, which is based in Tauranga.

Power disconnections equate to region's socio-economic status

The Electricity Authority says the number of households that have had power disconnected this year correlates with the socio economic make up of the region they're in.

The Labour Party says more than 19,000 households had their power disconnected in the first half of this year, compared with 17,500 in the first half of last year.

The authority says about 1.7 million of the 2 million electricity users in New Zealand are households.

Figures from June 2013 show an average household spends $1950 a year on power.

It says each retailer offers different tariffs and charges which, in turn, attract consumers from different socio-economic groups.

The retailer, Bosco, reported the highest percentage of customer disconnection's in the 2013 quarter at 3.2%, followed by Pulse which disconnected 2.5% of its customers and then King Country Energy which disconnected 1.2%.