Will Power Prices rise in 2020? The jury is out, but it looks like they might. Here’s how you can get ready to lower your power bill for 2020.
The government recently announced a raft of changes in their Eletricity Reforms, all intended to lower power prices. However industry insiders say that electricity rates are likely to go up before they come down.
"We normally see a round of price reviews in April in line with the network pricing," said Murray Dyer, founder and CEO of Simply Group, an energy consultancy firm. "I think given where wholesale prices have been tracking in the last 12 months with the Pohokura gas outage, I'd be surprised if we don't see some price increases needing to flow through."
This was already visible to large commercial customers whose multi-year contracts have expired and are being renegotiated with higher prices, Dyer said.
However, Energy Minister Megan Woods pushed back on that. In Parliament in October, she told Young that "there is no reason to think that higher wholesale rates will necessarily flow through to retail rates. I remind that member again that it didn't in 2017 when we saw prices in the $300 range per megawatt hour."
"I'd also like to tell that member that I am confident that we will see price drops, because as I told him in the answer to the primary, we have already seen $5 million flow back into the pockets of consumers, and the Electricity Price Review said that if all companies do away with their late payment fees, we could see $45 million flow back into the pockets of consumers."
The Government’s Electricity Reform will also be kicking in over the next few months. Two key changes that will effect NZ power consumers are:
The Electricity Price Review released by Woods last month estimated that consumers would be $45 million a year better off if power companies normalised pricing at the discounted level and only charged late-payers "reasonable fees" for the costs of chasing late payments.
There is no doubt that consumers are facing a lot of change and uncertainty when it comes to power. A practical first step is to compare power plans today to make sure you are on the best power plan for you.