11 Mar 2024

What is happening to consumers' power bills as low-use charge comes off?

From Nine To Noon, 9:05 am on 11 March 2024

Power companies are alerting some consumers to another increase to their bills as low-use fixed charges continue to be phased out. 

And it is not now clear a review of the policy to be done by the Ministry of Businesss, Innovation and Employment will go ahead. 

From April 1 electricity retailers will be able to increase their daily charges from $1.03 per day to $1.38.

The phase-out began in 2022 and was set to go for five years. It is on track to increase again to $1.72 next April - if the current Government doesn't intervene. 

The previous Government decided to phase out the low-use fixed charges which are paid by around 60 percent of households - arguing it was unfair for higher-use households to pay more for distribution. 

The chair of the Consumer Advocacy Council, Deborah Hart, talks to Kathryn. 

high voltage powerlines

High-voltage power lines. Photo: 123RF