Electricity low user plans to be phased out

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tripper1000

1617 posts

Uber Geek

#2781518 21-Sep-2021 09:43

I'm an EV driver on a low user plan. Doing the math using my current provider and their Standard user plan (that I would presumably be forced onto), my summer bills will go up $7 and my winter bills down by $2. Not as bad as if first thought. I was thinking this was going be be a big deal, but not so much. I doubt any pensioners bills are going to go up by $45. Looking at my retailers prices you'd have to be using less that 14 units per month to see a $45 rise, which is not any residence where people cook, shower and illuminate on a daily basis.

They also increase pricing complexity and confusion, making it harder for consumers to shop around for the right electricity plan.

This is a overt lie that needs to be call out and cause you to question the motivations. This means people are stupid and we need to tell them what to do, to stupid in fact to use the internet and a website like powerswitch.org.nz which we see advertised on TV every other day.

gzt: There are advanced plans for transmission upgrades in progress in advance of the smelter closure. Please discuss that elsewhere and stay on topic:

Electricity low user plans to be phased out.

Divide and conquer eh? But there is a direct correlation here.

PolicyGuy:

...NZ governments shouldn't distort the electricity "market" to achieve social benefits.
Either have an electricity market and use other mechanisms to achieve social benefits
or
stop pretending there is a "market" for electricity, nationalise all the generators, lines companies & retailers and re-invent a New Zealand Electricity Department...

When you are factoring in the cost/savings of lower user plans being phased out, don't forget to factor in the 13% rise in lines charges once the smelter closes. They pay 13% of national transmission charges despite using ~1% of the lines infrastructure.

Edit: That is a rise of about 26 cents per day or $95 per year.

I just wish there was consistency in the electricity market. Be free market or be nationalised, but don't gouge industry and drive down the jobs market. They say standard user residential customers shouldn't subsidise low users, but they say industry should subsidise residential customers! This cross-funding is exactly what is driving the smelter (and it jobs) out of the country.

tripper1000

1617 posts

Uber Geek

#2781526 21-Sep-2021 09:54

I second the motion that it reduces incentive to be more economical and efficient.

elbrownos

109 posts

Master Geek

#2781693 21-Sep-2021 14:26

tripper1000:

This cross-funding is exactly what is driving the smelter (and it jobs) out of the country.

The smelter is not being driven out of the country. In fact it has never been more profitable.

Aluminium prices are at an all time high and the rate they negotiated with Meridian is about 1/6th of the prevailing market rate this year.

gzt

17140 posts

Uber Geek

Lifetime subscriber

#2781805 21-Sep-2021 18:14

tripper1000: I second the motion that it reduces incentive to be more economical and efficient.

Even so I'm not sure if will make much difference to motivation. I think they made the right call there. The average NZ per kWh unit price is motivation enough to reduce use.

Scott3

3970 posts

Uber Geek

Lifetime subscriber

#2784207 25-Sep-2021 15:53

old3eyes:

WyleECoyoteNZ:

This just increase's the cost of living in this country *sigh*

We're a family of 4 on a Low User plan, last year 6650 kWh, I'd put his mainly down to Gas hot water and elements.

A quick calculation, that would see my last bill go from $178 (614 kWh) to $232 ($54 increase) at a Daily charge of $1.80 (up from 30 cents)

I just looked at my power bill and I will be in the same boat with my costs going up about the same amount.

Suggest you you two run your numbers again. For households close to the 8000kWh (north island) tipping point the cost difference should be fairly small.

Ballpark prices for my area:

Standard user: $2.15/day, 22c/kWh incl gst

Low user: $0.35/day, 30c/kWh

If the bill was for a 30 day month and 614kW, this works out to:

Standard User: $199.6

Low User: $194.7

So about a $5 a month increase in cost (less whatever standard prices come down, with no longer having to subsidies low user's).

[edit] - don't worry about my $ values being different, you will be on a better deal, or in a bit of the country with cheaper power than the list pricing I pulled from a retailer in my area. (I am on a better deal than these quoted values too, as a result of my new retailer beating my old retailers price, just didn't use it as wouldn't be fair to use that in the comparison vs a list price).

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