Latest news with #ElectricityAuthority
Scoop
6 days ago
- Business
- Scoop
Almost A Third Of NZ Households Face Energy Hardship – Reform Has To Go Beyond Cheaper Off-Peak Power
The spotlight is again on New Zealand's energy sector, with a group of industry bodies and independent retailers pushing for a market overhaul, saying the sector was 'broken' and 'driving up the cost of living'. The Commerce Commission and the Electricity Authority has already established a joint task force, after prices peaked in 2024, to investigate ways to improve the performance of the electricity market. The Authority recently announced new rules requiring larger electricity retailers to offer lower off-peak power prices from next year. The government is also expected to make further announcements on the sector. But the question is whether these changes will do enough to help New Zealanders live affordably in dry and warm homes. Some 30% of households face energy hardship. This means they struggle to afford or access sufficient energy to meet their daily needs. Caused by a combination of poor housing quality, high energy costs and the specific needs of vulnerable residents, energy hardship can lead to serious health issues and high hospital admission costs. We know from our own research over the past 18 years that having power disconnected can negatively affect health and wellbeing. People have told us that not being able to afford enough power to keep warm made them more likely to get sick and exacerbated existing health conditions. They described mental distress from unaffordable electricity and the threat of disconnection. Research participants used words such as 'stressed', 'anxious' or 'depressed'. They also spoke about having to choose between food and power bills. If power is disconnected, there can be additional costs from losing food in the fridge and freezer, as well as the problem of paying disconnection and reconnection fees when people already can't afford the bill. What's driving up power bills? In 2024, a 'dry year' that increased the value of hydro generation, combined with lower-than-usual wind and declining supply of gas, resulted in wholesale electricity price spikes. But these winter shortages aren't the only factor pushing up power bills. Electricity bills reflect several costs along the supply chain from generation to getting the electricity to the sockets in our homes. A new regulatory period for lines charges from April 2025 increased bills by $10 to $25 per month, depending on where you live. At the same time, low fixed daily charges are being phased out. This means the cost of being connected to the grid is the same no matter how much power is used. It is the poorest New Zealanders who are being hardest hit. The lowest income households spend a bigger proportion of their income on power compared to higher income households. Having electricity prices increase faster than inflation will put even more families at risk. The average household electricity bill was up 8.7% in May 2025 compared to June 2024. According to a recent Consumer NZ survey, 20% of respondents said they struggled to pay their power bill in the past year. Tackling hardship The new Consumer Care Obligations might help reduce some of the risks. Power companies must now comply with these obligations when working with households struggling to pay their bills, are facing disconnection or have someone in the home who is medically dependent on electricity. If households feel their power company is not meeting these obligations, they can contact Utilities Disputes, a free independent electricity and gas complaint resolution service, or the Electricity Authority. But multiple changes are needed to address the different parts of the energy hardship problem. Improving home energy efficiency through schemes like Warmer Kiwi Homes is crucial. Introducing an Energy Performance Rating for houses would make it easier for home buyers and renters to know how much it will cost to power a home before they move in. This would also help target energy hardship support. The government can also make electricity more affordable by supporting not-for-profit power companies. Another good move would be to help more households to install rooftop solar by providing access to long-term low-interest finance. Lower prices during off-peak hours are a good start. But it is clear the sheer size and complexity of the problems mean government action, with community and industry collaboration, needs to go beyond slightly cheaper electricity when there is less demand. Disclosure statement Kimberley O'Sullivan receives funding from a Rutherford Discovery Fellowship administered by the Royal Society Te Apārangi, the Health Research Council, the Ministry of Business, Employment, and Innovation, and Lotteries Health Research.
RNZ News
7 days ago
- Business
- RNZ News
Energy reform has to go beyond cheaper off-peak power
First published on Photo: 123rf Opinion - The spotlight is again on New Zealand's energy sector , with a group of industry bodies and independent retailers pushing for a market overhaul, saying the sector was "broken" and "driving up the cost of living". The Commerce Commission and the Electricity Authority has already established a joint taskforce , after prices peaked in 2024, to investigate ways to improve the performance of the electricity market. The Authority recently announced new rules requiring larger electricity retailers to offer lower off-peak power prices from next year. The government is also expected to make further announcements on the sector. But the question is whether these changes will do enough to help New Zealanders live affordably in dry and warm homes. Some 30 percent of households face energy hardship . This means they struggle to afford or access sufficient energy to meet their daily needs. Caused by a combination of poor housing quality , high energy costs and the specific needs of vulnerable residents, energy hardship can lead to serious health issues and high hospital admission costs . We know from our own research over the past 18 years that having power disconnected can negatively affect health and wellbeing. People have told us that not being able to afford enough power to keep warm made them more likely to get sick and exacerbated existing health conditions. They described mental distress from unaffordable electricity and the threat of disconnection. Research participants used words such as "stressed", "anxious" or "depressed". They also spoke about having to choose between food and power bills. If power is disconnected, there can be additional costs from losing food in the fridge and freezer, as well as the problem of paying disconnection and reconnection fees when people already can't afford the bill. People have said not being able to afford enough power to keep warm made them more likely to get sick and exacerbated existing health conditions. Photo: 123RF In 2024, a "dry year" that increased the value of hydro generation, combined with lower-than-usual wind and declining supply of gas, resulted in wholesale electricity price spikes . But these winter shortages aren't the only factor pushing up power bills. Electricity bills reflect several costs along the supply chain from generation to getting the electricity to the sockets in our homes. A new regulatory period for lines charges from April 2025 increased bills by $10 to $25 per month, depending on where you live. At the same time, low fixed daily charges are being phased out . This means the cost of being connected to the grid is the same no matter how much power is used. It is the poorest New Zealanders who are being hardest hit. The lowest income households spend a bigger proportion of their income on power compared to higher income households. Having electricity prices increase faster than inflation will put even more families at risk. The average household electricity bill was up 8.7 percent in May 2025 compared to June 2024 . According to a recent Consumer NZ survey , 20 percent of respondents said they struggled to pay their power bill in the past year. The new Consumer Care Obligations might help reduce some of the risks. Power companies must now comply with these obligations when working with households struggling to pay their bills, are facing disconnection or have someone in the home who is medically dependent on electricity. If households feel their power company is not meeting these obligations, they can contact Utilities Disputes , a free independent electricity and gas complaint resolution service, or the Electricity Authority . But multiple changes are needed to address the different parts of the energy hardship problem. Improving home energy efficiency through schemes like Warmer Kiwi Homes is crucial. Introducing an Energy Performance Rating for houses would make it easier for home buyers and renters to know how much it will cost to power a home before they move in. This would also help target energy hardship support. The government can also make electricity more affordable by supporting not-for-profit power companies . Another good move would be to help more households to install rooftop solar by providing access to long-term low-interest finance . Lower prices during off-peak hours are a good start. But it is clear the sheer size and complexity of the problems mean government action, with community and industry collaboration, needs to go beyond slightly cheaper electricity when there is less demand. Kimberley O'Sullivan is a Senior Research Fellow, He Kāinga Oranga - Housing and Health Research Programme, University of Otago. - This story originally appeared on The Conversation.
RNZ News
17-07-2025
- Business
- RNZ News
Electricity Authority set to make connections to national grid easier, faster
Photo: 123rf The Electricity Authority is making it easier and faster to connect to the electricity network, with a focus on reducing cost and time for businesses. The authority said it would be easier to connect infrastructure such as public EV charging stations, manufacturing and solar farms to the national grid. Overall, the authority expected lines companies and those needing to connect would benefit from more efficient connection processes. Authority general manager Tim Sparks said the changes standardised rules for connections to the 29 lines companies. "Inconsistencies and inefficiencies in the application processes and pricing methodologies across New Zealand's 29 lines companies can add unnecessary time and cost to projects, particularly for those who want to operate in multiple regions," Sparks said. "Under the new rules, lines companies must offer the least-cost, technically acceptable solution." Sparks said any extra costs, such as running a connection underground would be paid for by whoever requested it. "This ensures people aren't paying for other network costs they didn't ask for." The authority's changes also included processes for larger users wanting to connect, such as an EV charge point operator or a public transport operator. The changes also included timeframes for decisions. "To date, large energy users haven't had baseline protections because the rules have only applied to electricity generators directly connecting to the network," Sparks said. "Providing a clear and consistent process will increase transparency and certainty for those needing to connect and make the process more efficient for everyone involved. Most of the requirements for new connection pricing take effect on 1 April 2026 to align with any other distribution pricing changes, as well as with the Commerce Commission processes. The new requirements for the connection application processes come into effect from the second half of 2026. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Otago Daily Times
16-07-2025
- Business
- Otago Daily Times
New rules for big electricity retailers, cheaper off-peak power prices
Electricity sector rules changed to force lower off-peak power prices Retailers with +5 pct market share required to participate Consumers selling power from solar panels-batteries to get better prices Electricity Authority says it's about giving consumers more choice Big electricity retailers will have to offer cheaper prices for off-peak power use prices, and fair prices to people who sell surplus power to the grid from rooftop solar panels at peak times. The Electricity Authority is changing sector rules to require retailers with more than five percent market share to offer time of use prices from the middle of next year, after a report by a joint task force of the authority and the Commerce Commission. The changes were aimed to give consumers more choice in how and when they use power, and put downward pressure on prices. "Currently, access to time-varying pricing plans for power use and supply is very limited. The decisions announced today will help drive retail innovation and ensure most New Zealanders have access to these plans within a year so they can benefit from cheaper off-peak power," Commerce Commission chair John Small said. "They also strengthen the case for rooftop solar systems with batteries, by rewarding people with these systems for the savings they provide the network when selling power into the system at peak times." Electricity Authority chair Anna Kominik said the changes would give consumers more choices for how they consume and supply power, and reward choices that benefit the system and keep power prices down. "Consumers who engage as active players in the power market will become important contributors to a more sustainable and dynamic electricity system, and we will all benefit from this through lower power costs," Kominik said. The changes mean retailers will have to offer fair prices to people who sell surplus power to the grid from roof top solar panels at peak times. Photo: Fabian Rieger / 123RF Big power sellers, lines companies targeted The changes would directly affect the big four generator-retailers - Contact, Genesis, Mercury, Meridian - which have about 83 percent of the retail market. In background information, the authority said none of the large retailers offered time-of-use plans to all customers, and for those that did it benefited owners of electric vehicles. It said time-of-use pricing would mean cheaper power at off-peak times, and more expensive power at peak times, which it defined as typically on weekday mornings between 7-10am, and evenings between 5-9pm. Off-peak times were usually overnight, in the middle of the day or on weekends. It said heavy electricity users would benefit, but those unable to change their consumption habits were unlikely to save money. Lines companies would also be covered by the rules changes in giving a rebate to consumers who upload power at peak time to the electricity from sources such as solar panels and batteries. Kominik said the authority would contact large retailers and distributors over the coming months on the changes, which would come into effect the middle of next year.
Otago Daily Times
16-07-2025
- Business
- Otago Daily Times
New rules for big energy retailers
- Electricity sector rules changed to force lower off-peak power prices - Retailers with +5 pct market share required to participate - Consumers selling power from solar panels-batteries to get better prices - Electricity Authority says it's about giving consumers more choice. Big electricity retailers will have to offer cheaper prices for off-peak power use prices, and fair prices to people who sell surplus power to the grid from rooftop solar panels at peak times. The Electricity Authority is changing sector rules to require retailers with more than five-percent market share to offer time of use prices from the middle of next year, after a report by a joint task force of the authority and the Commerce Commission. The changes were aimed to give consumers more choice in how and when they use power, and put downward pressure on prices. "Currently, access to time-varying pricing plans for power use and supply is very limited. The decisions announced today will help drive retail innovation and ensure most New Zealanders have access to these plans within a year so they can benefit from cheaper off-peak power," Commerce Commission chair John Small said. "They also strengthen the case for rooftop solar systems with batteries, by rewarding people with these systems for the savings they provide the network when selling power into the system at peak times." Electricity Authority chair Anna Kominik said the changes would give consumers more choices for how they consume and supply power, and reward choices that benefit the system and keep power prices down. "Consumers who engage as active players in the power market will become important contributors to a more sustainable and dynamic electricity system, and we will all benefit from this through lower power costs," Kominik said. The changes mean retailers will have to offer fair prices to people who sell surplus power to the grid from roof top solar panels at peak times. Photo: Fabian Rieger / 123RF Big power sellers, lines companies targeted The changes would directly affect the big four generator-retailers - Contact, Genesis, Mercury, Meridian - which have about 83 percent of the retail market. In background information, the authority said none of the large retailers offered time-of-use plans to all customers, and for those that did it benefited owners of electric vehicles. It said time-of-use pricing would mean cheaper power at off-peak times, and more expensive power at peak times, which it defined as typically on weekday mornings between 7-10am, and evenings between 5-9pm. Off-peak times were usually overnight, in the middle of the day or on weekends. It said heavy electricity users would benefit, but those unable to change their consumption habits were unlikely to save money. Lines companies would also be covered by the rules changes in giving a rebate to consumers who upload power at peak time to the electricity from sources such as solar panels and batteries. Kominik said the authority would contact large retailers and distributors over the coming months on the changes, which would come into effect the middle of next year.
