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A power company says it has delayed a price increase that was planned to take effect during the shutdown, but does not appear to have told customers.
Photo: 123RF
RNZ has seen a letter Nova sent to customers in mid-March stating that gas prices would rise 1.5 cents per day and 0.66 cents per kilowatt on April 20.
One of his clients, Wellington’s independent freelance, Danny Rood, said the increase was poorly planned and that the company should have been delayed.
“It is not cricket. Who in their right mind would go ahead and raise energy prices when they know that more people will spend more time at home. They are going to make a profit from it and, furthermore, they are putting the price up just for using the power.
“It’s a bit of a kick in the guts for consumers who just want to stay warm, dry and healthy.”
A Nova spokesperson told RNZ that the increase had been delayed indefinitely.
“The Nova team is very aware of the impact of Covid-19 on New Zealanders and, as an essential service, we have been working hard to ensure that our clients continue to receive the services they need every day.”
“The price increase was planned long before Covid-19 and the alert level restrictions that affected New Zealand.
“Due to the current challenges facing New Zealanders, Nova made the decision to delay this price increase, with an appropriate date yet to be decided.
It is unclear when that decision was made.
Rood said it was new to him, and the person he spoke to on April 21 clearly told him that he was making progress as planned.
He said he had not been informed of the delay.
When RNZ previously called Nova, an employee said he was unable to speak to the media, but noted that the increase had been in the pipeline “long before the shutdown.”
In the letter, Nova cited an increase in measurement, transmission and network costs as reasons for the increase.
“We are changing its price to reflect changes in third-party costs, such as the company’s network charges, transmission and metering (including the provision of our immediate payment discount, where applicable) along with an increase in Nova to cover changes in our costs. ” read.
Rood said he understood it would have been decided before Covid-19, but it was a matter of principle.
“It seems quite opportunistic and it goes against all that mantra of giving Kiwis a fair chance.”
Rood approached the company on March 26, urging them to reconsider the increase.
He explained that, as someone who was self-employed, he had lost all income for the foreseeable future.
“In the wake of Covid-19, financial burdens have been concentrated on households, including ours, and a constant source of income is now not as readily available as before,” he wrote.
“The increase is timely and adds unnecessary and undue stress to our home,” he wrote.
He also threatened to change companies if the increase continued.
Three weeks later, he hadn’t heard a thing, so he followed up with a phone call.
Finally, on April 21, she spoke to an account manager, who confirmed that the increase had taken effect as planned.
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