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| 1 |
ID:
117243
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| Publication |
2013.
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| Summary/Abstract |
Prepayment metering is an electricity payment method often used by low-income consumers. Fuel poverty is an important public health problem in New Zealand, and is likely to be a particular problem for those using prepayment metering. This paper details a nationwide postal survey of consumers undertaken with the support of three major electricity retailers, which investigated the advantages and disadvantages of using prepayment metering from a consumer perspective. The study surveyed a total pool of 359 randomly selected consumers across the three companies, a response rate of 48%. The study found that while almost all respondents felt the benefits of using prepayment outweighed the risks of running out of credit or 'self-disconnection', 53% of respondents experienced self-disconnection in the past year. Of concern, over a third of respondents experiencing self-disconnection were without electricity for more than 12 h. The frequency of self-disconnection was also high, with 17% of those disconnecting reporting six or more events in the past year. Government intervention could reduce the risks and disadvantages involved with using prepayment metering, which could then support initiatives aimed at reducing fuel poverty.
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| 2 |
ID:
103625
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| Publication |
2011.
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| Summary/Abstract |
Fuel poverty, or inability to afford adequate heating for a reasonable outlay of expenditure, is a significant and under-researched problem in New Zealand. The connection between fuel poverty, and electricity disconnection or 'self-disconnection' is analysed for four cities using prepayment metering to pay for electricity. A price comparison analysis on a government-sponsored website showed that prepayment metering was more expensive than other payment options. This website analysis was supplemented by qualitative data from older people with chronic respiratory disease expressing their views about electricity disconnection and prepayment metering. We show that prepayment metering for electricity is more expensive than other payment methods in New Zealand and that older people's insights provide valuable context to these issues. Under the present payment schedule, the use of prepayment metering to pay for electricity is not a suitable policy instrument to address fuel poverty, which remains problematic. The deregulated electricity market continues to lead to increases in the real price of residential electricity and in the number of people in fuel poverty. We offer policy suggestions for reducing fuel poverty in New Zealand.
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