Ryan Bridge: Look out Kiwis, your power bill is about to go up

I know, I know we're celebrating this morning, the OCR, the money back in your pockets that's coming, inflation coming down. 

But MBIE has warned the government that electricity prices are likely to rise significantly over the next two years – this is a story from BusinessDesk. 

See, we have all seen the spot prices market increase, skyrocket even, but we haven't felt that at home because our gentailors, the guys that we get it off, insulate us by hedging. 

However, getting power to us is expensive and we've just been talking to Grant McCullum from Northland about this exact point. 

40% of our bill is distribution and transmission. 

Forget your weather, whether the wind blows, you know, the sun shines the rainfalls, whatever. Just getting it to us costs almost half of our total. 

And that job is done by essentially monopolies: the distributors, the lines, companies, Transpower. 

So the Commerce Commission regulates their profits, we would expect them to do. 

The contracts last five years, the next contract up for renewal in March. 

Your household bill for electricity could go up $15 per month or $180 per year, for some households that will be $20 per month, $240 per year. 

MBIE say there is a serious risk that some homes won't be able to afford heating. 

And we know what happens when people can't heat their homes, the hospitals fill up, industry and business feel the squeeze, and our thin growth forecasts could also be squeezed by something like this. 

So what's the moral of the story? Well, basically, go and buy yourself a nice warm jumper, get a hot water bottle. And if you are single and living alone, you have until April to find someone to cuddle at night. 

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:00):
Lookout, Kiwi's your power bill is about to go up.
I know, I know. We're celebrating this morning in the
ocr the money back in your pockets is coming and
fation coming down. But MBA has warned the government that
electricity prices are likely to rise significantly over the next
two years. This is a story from Business Desk. See,
we have all seen the spot prices market increase skyrocket

(00:23):
even but we haven't felt that at home because our
gen taylors, the guys that we get it off, insulate
us by hedging. Right. However, getting power to us is expensive,
and we've just been talking to Grant McCallum from north
And about this exact point. Forty percent of our bill
is distribution and transmission. Forget you whether whether the wind blows,

(00:45):
you know, the sun shines, the rainfalls, whatever, just getting
it to us costs almost half of our total and
that job is done by essentially monopolies, the distributors, the
lines companies transpower. So the Commerce Commission regulates their profits, right,
we would expect them to do that. Five year contracts,
next contract up for a newle March, your household bill

(01:06):
for electricity could go up fifteen dollars per month or
one hundred and eighty dollars per year. For some households
that will be twenty dollars per month two hundred and
forty dollars per year. They say this is the NB advice.
There is a serious risk that some homes won't be
able to afford heating, and we know what happens when
people can't heat their homes. The hospitals fill up, industry

(01:29):
and business field the squeeze and our thin growth forecast
could also be squeezed by something like this. So what's
the moral of the story. Well, basically, go and buy
yourself a nice warm jumper, get a hot water bottle,
and if you are single and living alone, you have
until April to find someone to cuddle at night twenty
nine and after five. For more from News Talks B

(01:52):
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