4 February 2015

Low income families benefit from options

Low income families can only benefit from increased affordable options for purchasing power, says the New Zealand Federation of Family Budgeting Services.

CEO Raewyn Fox says many client families will be excited by products like Glo-Bug, a prepaid power solution from Mighty River Power, even more so with the announcement of a special discounted rate for Community Service Card holders.

“We have a number of client families that suffer from ‘bill shock’, when their monthly bill is higher than usual. This is often over winter or when there’s a special event like Christmas. Their budgets are tight anyway, so unexpectedly high bills put a real strain on their budget and ability to pay other essential items. It causes many to miss their prompt-payment discount,” Fox said, “and we have plenty of examples of families choosing between feeding the kids or keeping the lights on.”

When a household uses Glo-Bug, they pre-pay for their power so there’s no bill shock at the end of the month, and the prompt-payment discount is built in.

“This is a wakeup call to the electricity industry that has been operating in the same way for a long time,” Fox explained. “It reinforces the need to take advantage of technology to deliver services in a way that suits the lifestyle of New Zealanders, more and more of whom are on a tight budget.”

An example of this is the number of households without a landline. “Most of our client families use a mobile phone as their home phone. Being able to check your power usage and top-up with your mobile phone is a good example of using technology in a new way that suits the clients we see.”

Budget advisers provided feedback on the original Glo-Bug product which has seen the price drop for Community Service Card holders. “This makes it an even more attractive option to families on a limited income,” Fox said.

“Having alternative options for purchasing power gives ordinary New Zealanders the control they need,” Fox said.

ENDS

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