There are calls for greater regulation of power prices, after new figures revealed a 3% rise in power prices in the year to June, despite a 3% fall in power use.
Economists, Consumer New Zealand, Grey Power and the Domestic Energy Users Network are all calling for power prices to drop in line with a fall in demand.
Economist Geoff Bertram of Victoria University says the law of supply and demand would suggest prices should fall, and the fact that they are not falling shows the electricity market isn't working.
Many consumers have long suspected what the figures suggest - that prices go only one way, and that's up, no matter how much consumers cut back on their power use.
Dr Bertram says the Government is at fault in the first place for setting up an uncompetitive, profit-driven industry.
He says the only recourse for consumers on the sharp end is to cut down their power use.
Dr Bertram's comments are echoed by Bill McLaughlin of Wellington who says there's a need to get away from the fascination with market forces and back towards a system where people have some control over power companies through regulation.
Figures from the Ministry of Business, Innovation and Employment show power use fell 3% in the year to June, and prices rose 3%: four times the rate of inflation.
The Electricity Authority has acknowledged total generation is at its lowest since 2005 and demand has been quite flat since 2008.
Molly Melhuish of the Domestic Energy Users Network claims a significant factor behind the weakening demand is that people living in cold areas are sacrificing their health to combat rising prices.
Grey Power president Roy Reid says there's a rise in the incidence of pneumonia and bad colds among the elderly in those regions.
He says price rises are especially hard on those living in areas where woodburners have been banned.
Consumer New Zealand is also calling for electricity charges to drop.
It follows the release of government figures that revealed a 3% in power prices in the year to June, despite a 3% fall in power use.
Consumer New Zealand chief executive Sue Chetwin says there is always some excuse for high prices, the latest being the cost of infrastructure.
"Ordinary domestic consumers are continuing to pay increased prices for power when we know that there's over capacity in the market now.
''That should naturally mean that retailers are competing for customers and that should mean prices should drop."
The Electricity Authority insists that prices reflect the rising cost of power generation, even when demand is weak.
The Electricity Authority says investment in electricity infrastructure helped drive up power bills, despite a fall in demand.
Chief executive Carl Hansen told Morning Report power prices will reflect a balance between demand and industry costs.
But he said a lot of investment in the sector is now tailing off and he would not be surprised to see a flattening of future price increases.
