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Choosing the right electricity provider and the most suitable plan can bring relief to household budgets.
Powerswitch is a non-profit organisation backed by Consumer NZ, which allows users to compare options through its website, helping households choose the best plan for their needs.
The criteria used to determine the most suitable option include whether the home uses gas, the number of people living in the household, the days and times the home is regularly occupied, the systems used to heat water, the devices used for space heating and the level of insulation.
Powerswitch manager Paul Fuge says data collected over recent years indicates that around 90 per cent of households are paying more than they need to.
“Our research shows that people are becoming more aware of electricity prices and the need to take action. However, many do not know which actions make the biggest difference. Using the correct plan and provider could save households between $400 and $500 a year,” Fuge says.
However, the level of price increases across the country can vary significantly.
“In the Far North, we found annual cost increases in the range of $140 to $420, while in Wellington the same household can expect an annual increase of $102 to $305.”
Kerikeri currently has among the highest average electricity prices in the country, around 20 per cent above the national average and 32 per cent higher than Wellington. Even before the latest increases, households in the Far North were already paying hundreds of dollars more each year.
“Unfortunately, the biggest increases are often affecting areas where prices were already high and incomes are lower, worsening energy hardship,” Fuge says.
According to Powerswitch, residential electricity prices increased by around 12 per cent and are rising again by an average of five to 10 per cent nationally this year. However, what households actually see on their bills can vary more than that, which is why comparing providers and plans could be key to household finances.
For more information, visit www.powerswitch.org.nz.
