Electricity Charges Price Gouging

[Perry]

So it's election year and stealth taxes are good for Shonkey and co.
Said stealth taxes being price increases for electricity and line charges.
That provides the gummint with a bigger dividend and more GST.
Scratching through my papers, I note that the last increase was just
six months ago.

It is also said that improving the bottom line of the energy companies
will help in Shonkey's plans to hock them off, as they will look good
on paper. Yet allowing these rorts to continue does seem to play into
the watermelon reds' plans to put the brakes on this dominant position
exploitation of consumers.

Why should we care?

Well, as some pundits have said, competition for the dollars of buyers
can be wider than ordinarily expected. Our tenants will soon find that
there is less money for other things, including rent, after they pay the
latest rip-off to assorted lines and energy companies that were set up
in a competitive market (kidding!) by a certain twerp called Bradford.
Whose efforts, in hindsight, may have been more focused on maxing
the profits of energy companies.

Previous tenures with the Bankers Assn and Employers Fed may be
where he learned about bilking people for all they're worth.

Is there something else behind this? I.e. the CPI will go up so the RNBZ
will use it as an excuse to increase interest rates? Something else?

Wouldn't you all love to be able to increase rents every six months?

[Davo36]

Ummm who said their were definitely going to be price increases.

The trouble is, prices went up faster under Labour. Both governments use the electricity companies for stealth tax as you say.

[speights boy]

Perry
Have you checked on the comparison websites you are on the best plan with the best company?
powerswitch and whatsmynumber

Is been quite a while since my power charges were last increased.
Getting a 22% discount for online and prompt payment keeps me onside.

Now a 2.7% increase due to lines company charges.

Of course I am biased as I get quite a bit back in dividends.

I note all the power companies share prices have risen in the last few weeks.
Probably a reflection on the Nats polling, meaning that Lab/Green power plan of theirs has less chance of seeing the light of day.

[Perry]

Ummm who said there were definitely going to be price increases.

I have a letter from Genesis on my desk that says so.

• Line charge: up 12 cents a day.
• Electricity (energy): 1 cent/unit.

Take a 30 day month as an example and 500 units used.
(How realistic is the guesstimate of 500 units a month?)

That's:
$3.60 extra for line charges
$5.00 for the juice.
$8.60
Add $1.29 GST
$9. 89 total.

$10 a month. Pocket change? Just another straw on the camel's back?

Been a bit in the media about it, recently, too.

Genesis defends increase in prices
Power-price blame game 'unacceptable'
Power price hike coming soon
Power prices should start to come down: Consumer NZ
(What planet are they on?)

What charges are you presently paying and with what outfit?

[Perry]

Have you checked on the comparison websites you are on the best plan with the best company?
powerswitch and whatsmynumber

I looked at powerswitch. I seem to be well ahead of
the best offer there. By nearly $700.

Of course I am biased as I get quite a bit back in dividends.

I perhaps have an analogous bias. I'm part of a co-
operative buying group. That's likely why I'm ahead
by $696. My tenants are unlikely to be so lucky.

For all that, it does seem like an accepted form of
extortion by my love-to-hate gummint grubbers,
through their assorted puppets, et al.

[speights boy]

Yes
I'm with contact.
Whenever a cold caller from another company phones I mention this and the 22% "online, on time" discount and they immediately say "we can't bet that"
This is confirmed by whatsmynumber.

We are very much a low user.
Probably average only about $180 per month.

This last increase was only about $4.60 per month increase.

[Perry]

We use a wood boiler for all our hot water, using home-
grown fuel, so that keeps the energy costs down. But
I can't do anything about the lines company screws.
That's a monopoly and nothing can be done about it.

[speights boy]

I can't do anything about the lines company screws.
That's a monopoly and nothing can be done about it.

I invest in one of them, so I feel less aggrieved about them I guess.

[Perry]

I do have a sneaking admiration for your
can't beat 'em - so join 'em philosophy.

[speights boy]

Why should we care?

Well, as some pundits have said, competition for the dollars of buyers
can be wider than ordinarily expected.
Our tenants will soon find that
there is less money for other things, including rent, after they pay the
latest rip-off to assorted lines and energy companies that were set up
in a competitive market (kidding!) by a certain twerp called Bradford.

Whilst it is common, popular and perhaps therapeutic to complain about power and lines companies; when it comes to poorer tenant's finances I have no doubt it is companies such as these who cause far more financial damage in return for very little useful benefit.

Counting the cost

Easy finance, fast-money lenders are often condemned as "loan sharks", targeting society's most vulnerable, charging interest of up to 400 per cent, and trapping people in cycles of debt.
.........
"They will give it to you there and then. They make it sound so good. They turn around and say, ‘Look, you can just pay $20 a week, what's $20 a week?' And we're easy targets."

Living in low socio-economic neighbourhoods in Henderson, Auckland, and Aranui, Christchurch, Rangi says she and her neighbours are constantly approached by vendors looking to lend money.
"There is never a day when someone doesn't knock on your door."
.....
Budget services say some door-to-door lenders are targeting the vulnerable and elderly, who may not have capacity to say no to a sales pitch, and incur enormous debts for items they cannot use.

In a second case, a man bought a car for $10,000, but faced total repayments of $25,000. Christchurch City Missioner Michael Gorman said it appeared companies were deliberately preying on the vulnerable.

[speights boy]

Crikey !
Must be the Shipley effect making them so cheap.
13%+ yield and bonus shares will pay a few power bills for you though Perry.

Genesis float details revealed

Based the indicative price range, prospective 2015 financial year implied gross dividend yield was forecast to range from 13.5 per cent to 16.5 per cent.

[Perry]

I saw the sugar coated announcement.
But I long ago decided shares were not
my forte and were a good thing for the
inexperienced to stay away from, when
there's no inclination to learn new things.

All yours.