Energy prices are rising despite some major retailers' profits increasing, and Consumer NZ is urging Kiwis to do something about it.
For example, Genesis customers can expect to see their gas bills rise by an average of about 11% this month.
That's despite Genesis reporting a 600% increase in its annual profits - but they're not the only ones.
Consumer NZ's Gemma Rasmussen told Breakfast this morning that "these big retailers do have an opportunity to sharpen their pencils".
"It's a significant price hike and I guess the other thing that we know is that looking at the smaller retailers, there is actually cheaper offerings," she said. "The good news with all of this is that there is actually something that consumers can do about it.
"And that is switching...and when people do switch more, that actually really does force the retailers to consider their prices and sharpen them but, we would also hope that they would be a little bit more proactive about their pricing."
Rasmussen confirmed it was an industry-wide issue, but stressed that smaller players are more competitive at the moment.
"I think that what the energy industry knows is that people are really hesitant to switch. Power bills are confusing, there's concern that maybe the power will go off if they switch, and so there isn't as much movement in the market and people are a bit sticky.
"As a product, it doesn't matter who you're with, power is power," she said.
Genesis' response
In a statement, Genesis said price increases reflect a range of costs including the price of fuel, carbon charges, electricity line charges and the cost associated with delivering gas to customers.
"All of these costs are substantially increasing and while we have to continue to absorb some of these costs, we will need to pass some of them along," the statement read.
Rasmussen agreed the electricity market is incredibly complex.
"And statements like this can be delivered, and consumers don't really know what that means.
"But I think at the end of the day we need to look at the profits and say, is it reasonable to be increasing prices again when your profit levels are this high?" Rasmussen asked. "Absolutely, there are costs and businesses should make a profit, but the question needs to be asked, what's a reasonable level and how much should New Zealanders have to pay?"
'An essential service'
Energy poverty researcher Kimberley O'Sullivan told Breakfast that Kiwis are making sacrifices because of the price rises.
"One of the things that we're concerned about is not just the people that will end up disconnecting because of price rises like this, but those people who are perhaps sitting at home without the lights on because they're worried about what's going to happen if they get that high bill and get disconnected," she said.
"It's an essential service. That's one of the issues with the market-based system is that, we've got a market that's wanting to deliver profits to shareholders for something that people can't do without."
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