INDEPENDENT NEWS

Changes to improve electricity price monitoring

Published: Thu 20 Mar 2014 12:25 PM
Changes to improve electricity price monitoring
Energy and Resources Minister Simon Bridges today announced changes to improve electricity price monitoring and provide more accurate information about how the market is performing.
“Because of the Government’s 2010 reforms, the electricity market is more competitive than it has ever been,” Mr Bridges says.
“With more customers switching between retailers and new retailers coming into the market, discounts of up to $300 per year are available to consumers who shop around.
“While commonplace today, these discounts were a rarity before the National Government’s reforms, and the current way in which we monitor electricity prices isn’t detailed enough to capture these savings.
“The Ministry of Business, Innovation and Employment (MBIE) has been working with electricity retailers since November to develop the new approach.
“In simple terms, the changes mean we will no longer publish the advertised rack rates for power. Instead, future electricity price monitoring will reflect what consumers have actually paid for their electricity, including discounts and benefits.
“This will provide a more accurate measure of electricity prices in New Zealand,” Mr Bridges says.
“In addition, regional price monitoring will also improve.
“This work by MBIE complements projects that are already underway by the Electricity Authority, to ensure New Zealanders have access to transparent, reliable, and consistent information about electricity prices.”
What the new approach will provide:
Information every quarter on the average amount households paid for electricity at a national and regional level – this will reflect discounts received by consumers, such as prompt payment discounts, lower fixed term prices, loyalty rewards, and acquisition and retention payments
National average prices for commercial and industrial customers
Backdated information for the past five years, so that longer term price trends can still be monitored.
The first survey results will be released in June.
Ends

Next in New Zealand politics

Concerns Conveyed To China Over Cyber Activity
By: New Zealand Government
Parliamentary Network Breached By The PRC
By: New Zealand Government
GDP Decline Reinforces Government’s Fiscal Plan
By: New Zealand Government
Tax Cuts Now Even More Irresponsible
By: New Zealand Labour Party
New Zealand Provides Further Humanitarian Support To Gaza And The West Bank
By: New Zealand Government
High Court Judge Appointed
By: New Zealand Government
View as: DESKTOP | MOBILE © Scoop Media