Genesis Energy, one of New Zealand’s leading power providers, has announced another round of price hikes, impacting thousands of its customers. This development comes as an unwelcome surprise to many, marking the second increase in just eight months.
Starting from February 23, approximately 37,707 customers, accounting for around 11 percent of Genesis’s residential electricity customers, will face an average increase of 1.6 percent in their electricity bills. This hike is significant for some, with reports of daily bills potentially doubling.
Stephen England-Hall, Genesis Chief Retail Officer, attributes the price rise to inflationary pressures affecting the entire company, including the costs associated with generating and transporting electricity. “We understand the impact of any increase on our customers and encourage those needing assistance to reach out,” he stated.
A notable factor in this price hike is the phase-out of the low user fix charge, a scheme initially designed to assist low-income families with discounted daily fixed rate charges. However, a review by the Electricity Price Review Panel revealed that the plan was counterproductive, often leading to underheated homes and confusion among the users it aimed to assist. As a result, the discounted rate is being gradually removed over five years, with the maximum fixed daily charge for those on the scheme increasing by $0.30c.
One customer reported to Newshub that this hike would raise his electricity bill from $0.60c a day to $0.90c.
Reacting to these developments, Paul Fuge, Consumer NZ Powerswitch Manager, pinpointed the low user profile phase-out as a primary reason for the frequent and substantial price increases. “This is a significant change for the 60 percent of people who were on that plan,” he explained.
Fuge advises Kiwis facing higher bills to actively seek better deals and remember that there are multiple providers in the market. “Electricity is not a one-size-fits-all service. Consumers can find plans tailored to their specific needs, such as owning an electric vehicle or working from home,” he added.