July 29, 2015 1:00pm by David Farrar

Herald on power prices

The Herald reports:

One in five Auckland households switched power companies last year, helping them save an average of $136 in the process.

The Electricity Authority’s annual review of the industry’s performance showed that 385,000 households changed their electricity provider in 2014 using Government-sponsored tools. That was fewer than the previous year, when 396,000 consumers changed companies.

The review by Government’s electricity regulator said the biggest savings were made in Bay of Plenty, where people changing providers saved an average of $318.

Households on the East Coast were most likely to switch companies – nearly a third moved to another retailer in 2014.

The review said growth of electricity brands – including a record-high 27 retailers – had fostered the high rates of company-switching. Aucklanders had the most choice with 21 companies, four of which had joined the market in the past year.

Great to see competition working.

The authority said prices had risen more slowly than retailers’ costs, which suggested that competitive pressure was limiting price rises.

However, prices still increased last year despite the more competitive market. Statistics New Zealand figures showed power prices rose 3.6 per cent – more than three times the rate of inflation.

This is the increase in the 2014 calendar year, but …