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Thursday, Aug 14, 2014
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Lines charges low; ‘power units too high’ BY SUE NEWMAN
SUE.N@THEGUARDIAN.CO.NZ
Ashburton consumers are paying some of the highest energy rates in New Zealand – and the boss of its lines company has prices in his sights. EA Networks lines charges are among the country’s lowest but official figures suggest the district’s energy charge per kilowatt of 18.5 cents is 3 cents more than the rate charged in many areas. A Ministry of Business, Innovation and Employment survey puts EA Networks lines charges at 7.9 cents per kilowatt. Only Cambridge and Dunedin, on 7.8 cents, are cheaper. When it comes to power charges, however, the news is not so good, EA Networks chief executive Gordon Guthrie said. “It’s clear that energy networks are not giving the best deal they can to our consumers. It shows that there appear to be different rates for different areas,” he said. The survey shows only five areas pay more for their energy than Ashburton. The cheapest energy charge is enjoyed in Napier, 14.9 cents. One of the district’s largest energy suppliers is TrustPower. Community liaison manager Graeme
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Purchas confirmed there were variations between regions in the energy prices charged, but said this was driven largely by wholesale prices. These varied according to an area’s grid exit point. Areas such as Nelson and the West Coast had a higher energy cost, 19.9 cents per kilowatt, while Greymouth pays 20.4 cents. The ministry’s survey did not paint an accurate picture of charges because it was based on raw price, but many electricity consumers were on contracts that ensured they paid lower rates, he said. “This information is based on the lowest price you’d get without entering into a contract, but for our company we have between 65 and 75 per cent of customers who are on contracts. That means you can’t compare between regions and you can’t compare between retailers.” By keeping district’s lines charges down, EA Networks helped keep the district’s retail power price down. At 26.4 cents per kilowatt it is about the seventh lowest in New Zealand. The highest retail price is charged in Balclutha, 38.2 cents and the lowest in Oamaru, 25.3 cents. Seven energy retailers supply electricity to the Ashburton District – Contact, Genesis, Just Energy, Mercury, Meridian, Pulse and TrustPower.
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