“In just two years, electricity prices have surged 20%, and many households across New Zealand are feeling the strain,” says Jon Duffy, Consumer chief executive.

Consumer research found one in four households struggled to pay their power bills in the past year, and over half of New Zealanders are concerned about the cost of their household’s energy.

“In a country powered mostly by cheap renewable electricity, more than a million households should not be worrying about the cost of energy. But that’s the reality,” says Duffy.

Earlier this year, the major electricity companies reported combined half-year profits of more than half a billion dollars.

“While the big power companies rake in hundreds of millions in profits, more and more people can’t afford to heat their homes properly. Last year alone, more than 30,000 households were disconnected because they couldn’t pay their power bills,” says Duffy.

Consumer’s four-point plan sets out the changes needed to bring power bills down.

• End the dominance of the big four power companies – ensure separation of generation (making power) and retail (selling power) so smaller power companies can compete, which should lead to lower prices and more choice for consumers.

• Make power prices reflect real costs – sort out the market so consumers stop paying high fossil fuel prices for cheaper renewable energy.

• Invest in more homegrown energy – so we have enough power for years with less rainfall and reduce our reliance on expensive coal and gas.

• Set a long-term plan together – develop a cross-party energy strategy to put affordable power ahead of politics and vested interests.

“You can’t untie this knot with one pull,” says Duffy. “Fixing the electricity sector will take action on multiple fronts. Right now, the market is delivering for power companies, not people – and that must change.”

Lower prices and competition that were heralded in the Bradford reforms of the late nineties have not been delivered as promised.

“We have given the current system a fair crack, and more than 25 years later, we can confidently say the market is not delivering for consumers. We need a long-term strategy, with cross-party buy-in, that puts affordable power ahead of politics. It is not feasible to continue down the path we are on. New Zealanders support change. More than half the nation say energy issues will affect how they vote. Our petition is a way people can directly send a message that’s impossible for politicians to ignore – it’s time to act, and power bills must come down,” says Duffy.

The petition is open until mid-August.

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