No plans for power discounts from big energy companies during lockdown

Wednesday, 25 March 2020

Residential power bills are likely to rise as Kiwi consumers spend almost all their time at home during the four-week national lockdown, putting an additional strain on wallets.

When contacted by Stuff, major electricity retailers were not offering power discounts for customers affected by coronavirus or the lockdown, but said they were considering options.

Energy producers are classified as an essential service and will continue operating throughout the lockdown.

Flick Electric chief executive Steve O'Connor said the most critical thing for customers right now was for them to be reassured that power companies were continuing to operate and the lights would stay on.

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Consumers may face higher power bills as they spend more time as home using heaters and appliances during the lockdown.

“Flick is committed to looking after its customers, has published information on its website and has its customer experience staff equipped with information and processes to help those who need it.”

Flick was offering customers options to change billing frequency and payment plans, as well as a daily bill tally that allowed customers to see how their usage and accrued costs changed each day.

Other companies were taking largely the same approach.

Contact Energy was promoting its SmoothPay programme, which spreads out power bill spikes over a wider period.

A Genesis Energy spokesperson said it was prioritising supply and 'making sure our people have everything they need so we can keep the lights on and houses warm for our customers'.

Electricity supply and production will continue through the lockdown.

Genesis encouraged anyone struggling with power bills to contact them through their website to discuss alternative payment plans.

A Trustpower spokesperson said it had 'started proactively contacting our most vulnerable customers to check their wellbeing, removed data caps, and taken a number of other proactive steps to ensure our customers facing hardship will continue to have the services and support that they need at this unprecedented time'.

Retailers were still unclear what impact the lockdown would have on the national electricity grid.

While a surge in residential power usage was predictable, it would take another week or so to have an accurate estimate of how much office and factory power usage would decline.

The country's largest electricity consumer, the Tiwai Point Aluminium Smelter, will continue to operate throughout the lockdown. Approximately 13 per cent of all electricity produced in New Zealand is consumed by the smelter.

Energy Minister Megan Woods previously gave power companies six months to reduce prompt payment fees.

The Government announced it would double the Winter Energy Payment for beneficiaries and pensioners as part of a $12.1 billion stimulus package.

One energy retailer said they hoped the payment could be further expanded to cover non-beneficiaries during the lockdown.

Another option open to the Government was a crackdown on 'prompt payment discounts', which critics say effectively operate as late payment fees.

An Electricity Price Review in November 2019 recommended the Government scrap the discounts, but Energy Minister Megan Woods opted to give power companies six months to reduce the penalties on customers who paid their bills late before the Government took action.