Summarised by Centrist
Energy costs are soaring, with power retailers warning that more pain is on the way for Kiwi households.
Power retailer Octopus Energy reported on recent data from the Powerswitch comparison site, showing sharp price rises in major cities.
For instance, Christchurch saw rates jump nearly 15%, with Mercury’s (one of the affected retailers) short-term discounts up more than 40%. Wellington and Auckland saw similar hikes.
Mercury also acknowledged the pressure, stating, “indications are there are further increases in April.”
They’re adjusting fixed and standard rate plans to account for future hikes tied to regulatory changes set by the Commerce Commission.
Powerswitch general manager Paul Fuge noted, “we are seeing a lot of price changes coming through.”
He also warned that households could face an extra $150 per year, and maintaining and operating the infrastructure that transports electricity from power stations to consumers is set to rise 8-10% next year.
“You’ve got a perfect storm of price increases, all going in the same direction,” he said.
Reportedly 20% of New Zealanders are already struggling with power bills. If another crisis hits wholesale prices next year “it could get really dire,” he said.
Gareth Kiernan, chief forecaster at Infometrics, confirmed that official data isn’t fully reflecting more recent price jumps yet. However, household electricity costs rose nearly 6% over the past year.
