Press release
Electricity Authority seeks feedback from consumers on access to electricity and choice of plans
- Consumers
The Electricity Authority Te Mana Hiko wants to hear from people across Aotearoa about their experiences accessing electricity or finding a plan that works for them.
“Most people have access to electricity and can choose from a range of power companies and plans,” says Andrew Millar, Authority GM Retail and Consumer. “But we understand it isn’t always easy for some people with credit-related issues or older-style electricity meters."
The Improving consumer access and choice consultation will gather information and evidence to build a clearer picture about what improvements are needed so that people have better access and more choices.
“We want to make sure the electricity system works for everyone,” says Millar. “Every household relies on electricity every day. And yet we know last year nearly 47,000 applications for electricity were turned down by power companies because of credit issues.
“This doesn’t always mean people can’t get power. Some consumers can get access to prepay options, but that might not suit everyone. We want to get further evidence about the barriers to access people face. To do that, we need to hear from people about their experiences, in their own words.”
“We also know some households may have meters that limit access to newer products and services, including time-of-use pricing and prepay options that could help people better manage their costs.
“Credit and metering issues can also overlap, leaving some people with few practical choices to access power.
“The consultation will help us to examine how the options are working for the people who rely on them, and whether they are accessible, suitable and sustainable. Our current evidence suggests these pathways are important, but limited and fragile,” says Millar.
The Authority has identified three options for people declined a post-pay plan for credit-related reasons.
- Prepay electricity can help some households with credit-related issues to manage spending and avoid accumulating debt, but requires a smart meter.
- Social retailing and community-based services can offer tailored support but are not available everywhere.
- Special onboarding arrangements with power companies, such as bonds or ways of managing payments, are similarly limited and usually require someone to advocate on the consumer’s behalf.
“The consumer voice is so important as the data is just one part of the story,” says Millar. “We want to know whether the alternative pathways to accessing electricity are working for people.”
This work builds on a broader Authority programme focused on strengthening consumer protections, improving choice and empowering people with clear, useful information about their electricity options.
“We’re proud of the protections we introduced through the Consumer Care Obligations last year. All power companies must follow these rules to help people stay connected and manage their bills,” says Millar.
“We’ve also made important rule changes to give more choices to consumers who can shift some of their use to off-peak times and save money on power.”
“And later this year, bills will be clearer and easier to understand, bill shock from large back bills will be prevented, and power companies must be checking customers are on the best plan for their needs.”
Importantly, people can see what they can save on power any time by checking out the Authority’s new comparison and switching tool: Billy.govt.nz.
The Authority invites people to share their experiences of accessing electricity or finding a plan that works for them through this survey.
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