The Electricity Authority is suggesting changes to make electricity bills simpler and help consumers more easily understand and compare different plans.
It also aims to place the responsibility on power companies to recommend the most affordable plan for consumers.
This follows the government’s highly anticipated reply to a comprehensive review of the electricity sector.
The government has informed its three partly state-owned power companies—Genesis, Mercury, and Meridian—that the crown will participate in any capital raising required for major new projects.
However, it is adopting only two of the eight recommendations from the review, prompting analysts, businesses, and the opposition to claim that the response falls far short of a major overhaul of the sector and will not result in lower bills for consumers.
The Electricity Authority chief executive, Sarah Gillies, said feedback indicated that consumers found their bills confusing.
She said consumers struggle to locate the key information, making it difficult for them to understand their current plan and determine if a better deal is available.
“So we want to make it simpler and easier so people can compare plans and make sure they can get a better deal,” Gillies said.
The authority’s proposed changes aim to make bills clearer by presenting key information “upfront,” such as the amount due, the household’s current plan, and how to access assistance.
Currently, it is the consumer’s responsibility to evaluate their options and contact their power company to find ways to save money. However, Gillies said the responsibility should lie with the power company to review a consumer’s current plan at least every six months and inform them if a better deal is available.
The authority has developed several options for structuring power bills and is eager to determine whether these would assist consumers.
Gillies said time-of-use plans offering benefits like a free hour can be useful, but if a consumer finds them unsuitable, they should be able to switch to a different plan within a few months.
There were also cases where power companies charged customers for “back bills” spanning many months.
“That can give people real bill shock … [and] is really tough on a household budget. So what we are proposing is that there should be a clear six-month limit on how far back your household or small business can be charged.”
Gillies said there should be more innovations in the future, and this current initiative will establish a foundation for easier adaptation to exploring better options.