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Thread ID: 127951 2012-11-23 19:40:00 Why is electricity sooo expensive? ruup (1827) PC World Chat
Post ID Timestamp Content User
1314419 2012-11-24 02:04:00 Well you may ask why Electricity is so dear, but you just wait till you see the prices under new management after Key has sold the Power Companies to settle a few more Treaty Claims and another world tour.

Anyway, seeing the Whanau, including the extended Whanau all live in Aus, I thought I’d take the opportunity to compare their power prices.

Now before I go any further, I’d like you to consider a couple of facts. :)

NZ has mainly Hydro Power, so the fuel is free and most of the Hydro Power Stations paid for themselves years ago.

Aus on the other hand is mainly Coal powered which requires the fuel to be mined, transported, crushed to dust and burnt. On top of that their transmission networks are massive, simply because of the size of the country.

So, having thought that through, how do you explain that their electricity is cheaper? :eek:

I based my calculations on 5000 Kw/h (Units) and for that amount of power it was $A688.43 cheaper in Aus. This calculation took into account fixed charges and GST.

So there you have it, once again we’re being screwed big-time. :rolleyes:
B.M. (505)
1314420 2012-11-24 02:23:00 +1




New Zealand used to be known for its cheap power especially as much of it is hydro.

If the greenies were not so concerned about the odd slug in the valleys , then we would have more power and cheap too.:xmouth:
Cicero (40)
1314421 2012-11-24 09:03:00 Well you may ask why Electricity is so dear, but you just wait till you see the prices under new management after Key has sold the Power Companies to settle a few more Treaty Claims and another world tour.

Anyway, seeing the Whanau, including the extended Whanau all live in Aus, I thought I’d take the opportunity to compare their power prices.

Now before I go any further, I’d like you to consider a couple of facts. :)

NZ has mainly Hydro Power, so the fuel is free and most of the Hydro Power Stations paid for themselves years ago.

Aus on the other hand is mainly Coal powered which requires the fuel to be mined, transported, crushed to dust and burnt. On top of that their transmission networks are massive, simply because of the size of the country.

So, having thought that through, how do you explain that their electricity is cheaper? :eek:

I based my calculations on 5000 Kw/h (Units) and for that amount of power it was $A688.43 cheaper in Aus. This calculation took into account fixed charges and GST.

So there you have it, once again we’re being screwed big-time. :rolleyes:

Yes I have always thought what you said.
Our hydro is free and paid for years ago.
Aussie have to buy the coal and have large transmission costs and higher wages!

Go figure.

(But John key is able to pay for his own holidays if he wanted one - he is Minister of Tourism and is also doing a good job for our exporters)
Digby (677)
1314422 2012-11-24 10:26:00 You think it is expensive where you are in New Zealand? Come to the King Country where we get a really cheap unit charge!!!! But screwed with the fixed price Lines Charges . . . those are the charges that make up the bulk of your power bill the cost of the ditribution network and maintainance .

It is coming to a Lines Supplier near you eventually and it is not a pretty sight! Imagine paying the same monthly charge all year around reviwed every april based on the previous winters load that you have set for your household in addition to your supply usage . Then imagine going away for a month and still being billed that same amount evn though you have not used diddly squat power!

Thats a reality and yes even with using gas for cooking and alternatives for heating that dont involve electricty your still stung nearly $100 plus per month just to have a power connection!

Now you think electricty is expensive? The price is in the distribution cost not the production .
coldfront (15814)
1314423 2012-11-24 17:34:00 The harder the Greenies work in stopping any more generation the better for the power generators and soon also for the shareholders. And just wait for the next drought! notechyet (4479)
1314424 2012-11-24 19:18:00 You think it is expensive where you are in New Zealand? Come to the King Country where we get a really cheap unit charge!!!! But screwed with the fixed price Lines Charges . . . those are the charges that make up the bulk of your power bill the cost of the ditribution network and maintainance .

It is coming to a Lines Supplier near you eventually and it is not a pretty sight! Imagine paying the same monthly charge all year around reviwed every april based on the previous winters load that you have set for your household in addition to your supply usage . Then imagine going away for a month and still being billed that same amount evn though you have not used diddly squat power!

Thats a reality and yes even with using gas for cooking and alternatives for heating that dont involve electricty your still stung nearly $100 plus per month just to have a power connection!

Now you think electricty is expensive? The price is in the distribution cost not the production .

Yes I take your point, the Power Company’s all have creative ways to screw you .

Trying to get a comparison between Aus & NZ was quite a mission because of the way things were charged out .

For instance the Aus "Unit" charge was inclusive of GST (10% Aus) whereas the NZ "Unit" charge was exclusive of GST . The NZ GST (15%) was added on at the end .
Comparing Apples with Apples Aus was 23 . 07c per KW/h (Unit) and NZ 27 . 1c per KW/h both excluding GST .

The Fixed Charges incurred whether you use used any power or not were $1 . 16c a day in NZ and 28c per day in Aus . Once again Aus was inclusive of GST and NZ exclusive .

So all in all, like it or lump it, we’re being screwed with our power prices already and you can bet your life there will be substantial increases after the sale of the power company’s as the shareholders want a return on their investment . :D

The Company's used for comparison were TrustPower in NZ and ERGON in Aus .
B.M. (505)
1314425 2012-11-24 20:01:00 No need to be trapped with power prices. Just convert to gas (where there is such a wide choice of suppliers). For heating you could burn unjustified executives that litter the economy in such an obscene profusion. Alternatively, swear a lot.

Umm. Isn't most of the gas owned by the power companies and gas is no where as cheap as you may think. If there's a gas main going past your house it will most likely cost $3000 ~ $5000 to connect . That was the quote for our place in Tauranga so it stay on expensive gas bottles..

I'm just waiting for the usual argument that we're a small country along way from anywhere so it cost a lot of money to bring power here..
paulw (1826)
1314426 2012-11-24 20:06:00 If anybody seriously believes that any change of government will make the slightest difference to the cost of electricity for the better they are totally deluded. CliveM (6007)
1314427 2012-11-24 20:26:00 If anybody seriously believes that any change of government will make the slightest difference to the cost of electricity for the better they are totally deluded.

Dead right, once the Assets are sold they’re gone forever regardless of Government and the Company's will charge what they like.
B.M. (505)
1314428 2012-11-24 20:43:00 I'm just waiting for the usual argument that we're a small country along way from anywhere so it cost a lot of money to bring power here..

I remember getting into a hell of an argument with one of Jim Bolger’s right hand men a number of years ago on that subject.

He argued that it was our distance from the European Markets that stifled our exports.

I argued we were the same distance as we’d always been and if anything transportation made it a hell of a lot easier to access those markets now.

We failed to reach any consensus of opinion. :D
B.M. (505)
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