Photo / FileAlmost two years after a review of electricity bills recommended the move, the Government phasing out "low use" electricity plans which led to low-income families subsidising the bills of more efficient households. On Friday Energy Minister Megan Woods announced that the Government would begin a process to phase out "low-use" plans from April. Currently, the cost of delivering electricity through lines charges to those on low-use plans is supplemented by other households on standard-use plans. The 2019 Electricity Price Review panel found the low fixed charge regulations are poorly targeted and are not equitable – or fair to everybody – and recommended the change. The Electricity Retailers Association chief executive Cameron Burrows said the move "will stop many low-income households subsidising the electricity of better-off families".

Source: New Zealand Herald September 16, 2021 22:07 UTC