12.7% electricity price rise for Northland | Northland News | Local News in Northland

For the third year in a row, Northland Mercury Energy customers have been hit by a power price rise - this time some will be paying as much as 12.7 per cent more.

The company has about 7000 customers in the region. Those living in Kaitaia and further north face the biggest hike in the country at 12.7 per cent, which translates to between $15 and $18 additional per month. Customers from Wellsford to Whangarei can expect a 5.3 per cent increase.

The Far North power hike is almost double that of the next highest regional increase, with Rotorua and Christchurch charges rising by 6.5 per cent.

Mighty River Power, which owns Mercury, attributed most of the rise on increased transmission charges from national grid operator Transpower.

The increases differ from region to region because of variations in energy costs and line charges.

More than 1500 Northland customers will not receive an increase in their energy or lines charges as they signed up to Mercury Energy's three-year fixed price plan.

The latest hike follows similar rises of 3.3 per cent in 2010 and 3.5 per cent last year.

Pensioners and fixed-income earners in Northland are likely to be the hardest hit by the latest announcement. The Whangarei Child Poverty Action Group and Hikurangi Budgeting Advice has slammed the increase which meant the ability to buy food would be further reduced for struggling families.

Hikurangi Budgeting Advice said with schools having just started, the latest power price hike could not have come at a worse time. "The price of uniforms, stationery and other things has been a big problem this year and the power price rise does not help at all," budget adviser Pat Godfrey said.

Whangarei Child Poverty Action Group spokeswoman Ngaire Rae said the hike would see more people heading to the food bank.

Mighty River Power, which owns Mercury Energy, is the State-owned electricity retailer expected to be the first to be floated by the Government.

Mercury said lines charges, which include the Transpower charges, were responsible for about almost two thirds of the latest increase. Lines charges account for about 40 per cent of customer bills.

The remaining 2.1 per cent increase reflected higher electricity charges. Transpower charges are regulated by the Commerce Commission.

Mercury Energy general manager James Munro said the increase reflected additional costs it faced.

The average overall increase in Northland, including Auckland, would be 5.9 per cent.

Mr Munro said investment in electricity infrastructure was essential if New Zealand was to have a secure supply of energy as the economy and population grew.

 

5 ways to save power

Switch off your second or beer fridge - $100 to $300 estimated savings a year.

Dry clothes outside rather than using a dryer - about $200.

Switch your appliances off at the wall when not in use - varies.

Shut your curtains at dusk to keep the heat in - varies.

Wash your clothes in cold rather than warm water - $50 to $80.Action groups slam increase