$110 Credit for Those in Energy Hardship and On/Were On Low Use Plan @ Contact, Genesis, Mercury, Meridian, Nova, Powershop

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Stoic on 25/03/2024 - 22:40 mbie.govt.nz (1348 clicks)
Last edited 26/03/2024 - 01:58 by 1 other user

Saw this on Facebook. Doesn't apply to me but it might help some people in the Cheapies community so hopefully this raises some awareness.

Apparently also valid at Powershop as they're a sister company to Meridian.

Not sure what the energy hardship criteria is. Maybe late payments or in debt with them.

Power credits scheme
A $5 million power credits scheme has been set up to support low-use households who are struggling to pay their power bills during the phase-out of the Low Fixed Charge Tariff regulations.

The industry-funded scheme opened in June 2022 for households experiencing energy hardship, and who have been on a low-use plan within the last 6 months.

Contact Energy, Genesis Energy, Mercury, Meridian Energy and Nova Energy are the electricity providers currently participating in the scheme. Other electricity providers may join the scheme and customers are encouraged to check with their electricity provider for more information.

Retailers can apply a $110 credit to customers who are experiencing energy hardship and who are on a low-use plan, or have been in the last 6 months.

Customers should contact their retailers if they are struggling to pay their bill to discuss the support options available, including power credits.

Customers who have received professional budgeting advice may be eligible to receive a second power credit in the same year. Customers can receive a maximum of 2 credits per year. Power credits are only available to eligible customers for their primary residence.

As of June 2023, 8,090 power credits had been distributed, representing a total of $890,000 in direct support for households experiencing hardship.

The funding of the power credits scheme is split equally between the Electricity Networks Association, which represents all electricity distributors, and the Electricity Retailers’ Association of New Zealand, whose members collectively sell electricity to about 90% of New Zealand homes and businesses.

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Meridian Energy NZ

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• 

  HighvoltageRuss on 26/03/2024 - 06:10

  +9

  Is this the governments admission that it was wrong about the change to phase out low user pricing.

  • 

    Zyo on 26/03/2024 - 06:42

    +1

    Just like a lot of other schemes the intentions are good but it ends up making everyone worse off

    • 

      quote on 26/03/2024 - 07:29

      +5

      Its worse than that, the old low user system encouraged you to use less, but if the final bill hardly changes from actual use as most of the bill is just for being connected then meh, use whatever (werent they all about saving power a few years back)

  • 

    codyc1515 on 26/03/2024 - 07:28

    The outcome was always going to result in people’s power bills going up. That was known and okay apparently because on average they figured that more poor people than not was paying higher rates for power. It should go without saying some poor people live in energy efficient homes but still struggle to pay the bills.

  • 

    Rubenite on 26/03/2024 - 09:44

    National will never repeal this under urgency unfortunately as it would actually help people and harm shareholders

    • 

      Zyo on 26/03/2024 - 10:27

      +1

      So now it's Nat's fault?

    • 

      kyogui on 26/03/2024 - 10:56

      I wonder who changed the law and permitted the phase out of low user plans, still don't understand why that government think it's okay for everyone to pay more for power.

      • 

        Rubenite on 26/03/2024 - 11:00

        +1

        It was an absolutely terrible change brought in by Labour, for sure. But my point was that even though NACT don't have any policies other than repealing things Labour did, they won't repeal this.

  • 

    ttt on 26/03/2024 - 20:04

    The government doesn't care, or repeal this. this is a good opportunity to collect more GST.

• 

  travellinground on 26/03/2024 - 09:58

  +4

  Its almost as though the government was told by experts who didn't work for the gentailers that this would make people financially worse off, and they didn't listen.

  Good job on shifting the burden to taxpayers instead of the gentailers.

• 

  Kury on 26/03/2024 - 11:58

  +3

  Daily charge going from $10 to $30 a month on a low user plan, how is that helping the poor. Stupid

  • 

    quote on 26/03/2024 - 12:26

    +1

    I thought it wasnt gna stop until $2 a day, so $60 a month, and thats using zero power

    • 

      Kury on 26/03/2024 - 12:50

      Didn’t know that. I see most normal plans around $2 daily charge anyways.

      • 

        Aba22 on 26/03/2024 - 13:56

        +1

        From 2027 they can charge whatever they like!

      • 

        quote on 26/03/2024 - 15:02

        +4

        Low user or normal? Talking about low user here, used to be 30c. Being with contact if i used my free power right i could get a month for 50ish all up (got it down to an art) soon itll cost more than that even if i use zero power. No incentive to save power now

        • 

          Aba22 on 26/03/2024 - 19:03

          @quote: Maximum low fixed charge (excluding GST)
          Prior to 1 April 2022 $0.30 a day
          1 April, 2022 $0.60 a day
          1 April, 2023 $0.90 a day
          1 April, 2024 $1.20 a day
          1 April, 2025 $1.50 a day
          1 April, 2026 $1.80 a day
          1 April, 2027 Regulations removed. Power companies are no longer required to offer customers a low fixed charge.

      • 

        simch on 26/03/2024 - 15:03

        The plans that charge $2 a day now are the non-low user plans.

        Low user plans historically have been $0.30 ish a day but legislation have made it so they have to increase to $2 over the next 5-6 ish years.

• 

  Hungryhippo on 26/03/2024 - 13:53

  +1

  I am with Contact energy

  was told that I need to be on Low for atleast 6months, has overdue payment
  so I am not entitled for it.

  • 

    Stoic on 26/03/2024 - 13:56

    Thought as much. I guess just wait for your next bill to be overdue then call them again asking for the credit.

• 

  AhhNo on 29/03/2024 - 10:47

  This is the response I got, just sharing for those who are wondering. I haven’t responded to them as I don’t need the help.

  We can definitely look and see if you would be eligible for the low user credit🧐

  Contact supports the phase out of the Low User regulations, but we also understand that some customers may struggle with this change. We have a few tools that may assist, like changing the frequency of your bills so you can get them just after you've been paid or smoothing out payments over the year to help with budgeting. Check out more with the link below
  👉https://contact.co.nz/residential/billing-and-payments

  Can you please send through some more information about why you would be needing the help and how it would help with your bills in the future.🙏

  Also to be elibigle for this you would need to agree to a budgeting referral and also you would need to provide permission for us to share your account information (locality) with the governing body of the low user credit scheme.