Power costs drop for first time in 15 years

  • 16/06/2016
The last time prices went down in a quarter was 2001, according to MBIE (AAP)
The last time prices went down in a quarter was 2001, according to MBIE (AAP)

The price Kiwis are paying for their electricity has fallen for the first time in 15 years, Government research says.

The Ministry of Business, Innovation and Employment's (MBIE) latest quarterly survey has found the per unit price of electricity to retail customers had fallen by 1.4 percent in the year to March.

The last time prices went down in a quarter was 2001, according to MBIE.

Customers had been swapping power providers at record rates, prompting more discounts to keep people from switching, MBIE's energy trends manager James Hogan said.

"The decrease in residential electricity costs was driven by increased discounting activity and incentive credits, which rose 10 percent compared to the previous year."

However, figures for the year to June showed a rise of 1.5 percent on the back of changes to line changes in April.

The survey also found coal-fired generation had fallen a staggering 54 percent in the year to March, while fossil fuel energy was down 24 percent and gas 13 percent.

Renewable sources made up 82.2 percent of generation for the year.

"The amount of carbon emissions produced from electricity generation was at its lowest level in 20 years," Mr Hogan said.

NZN

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