5 Reasons Your Power Bill Might Be High
Have you received a power bill that made your eyes water? One that is higher than usual? Or perhaps you’ve had a conversation with friends or family and realised that your power bill might be higher than it should be?
It’s a frustrating realisation, especially when the cost of living is already squeezing our budgets. But it’s important to take a step back and understand the reasons why your power bill might be high, that way you can tackle the problem, and stop paying too much.
1. You’re on the Wrong User Plan
Energy retailers in Aotearoa must provide an option for households that consume small amounts of power. These are called low user plans.
If you are in the North Island, and consume less than 8,000 kWh annually, or in the South Island and consume less than 9,000 kWh annually, you are considered a low user. Low users are typically small households of one or two people.
If you are on the wrong plan for your needs, you will likely be paying more than you need to. If you are unsure what power user plan you are on, feel free to give our comparison consultants a call, and they can help let you know if you are on the right user plan.
If you are on the wrong plan, be sure you compare power plans with Power Compare to get on the plan that is right for you, so you can stop paying too much!
Am I a Low User or Standard User?
2. Inefficient Appliances Consuming Lots of Power
Old and outdated appliances could be the reason your power bill is higher than it needs to be. Modern appliances, especially ones with high star energy ratings, will use less energy to perform the same task. That means a modern heat pump with a high star energy rating will still keep you warm during the winter, without gobbling up heaps of power. If you have old appliances such as an old washing machine, fridge, chest freezer or heater, it might be time for an upgrade. While the high energy star rated appliances will come with an initial premium price tag, they will save you lots of money in the long run on your monthly power bill.
Benefits of Energy Efficient Appliances
3. Your Rate Might Have Changed
If you are on an open plan, your rate can be subject to change. Changes in energy rates can affect your overall monthly bill. This could be due to prices changing in the industry, and may be caused by global inflation. If you would like to stay locked into the same rates, you can compare fixed term power plans.
4. Change in Seasons
Unfortunately, the winter seasons particularly can create some unpleasantly high power bills. There are a few things you can do to reduce your energy consumption in winter and the peak of summer to minimise your bills, without compromising your comfort.
6 Ways to Lower your Bill and Stay Warm
5. You are Using Lots of Hot Water
Did you know that hot water can be one of the culprits for high energy bills? If you run your washing machine on the hot water cycle, you may be increasing your power bill unnecessarily. With advanced technology, washing detergents are highly effective at breaking down bacteria, germs, and sweat build up in your laundry. So using the cold water cycle to run your laundry is always a great way to reduce your hot water consumption. You can also make other changes around the home such as cutting back your shower times, and pausing the shower in between using soap and shampoo. It will help save you on your water bill, and reduce your energy bill.
Don’t Forget to Compare
One of the most effective ways to lower your power bill is to compare. Here at Power Compare, we are on a mission to help Kiwis make savings and stop paying more than they need to for their electricity. Our user-friendly platform makes it easy to compare your power bill within minutes. Simply jump on the website, enter your address, select filters based on your unique household, and compare the different plans available to you side-by-side. If you find one you like, you can make the switch in minutes. Comparison can help you unlock savings on your power bill that will truly make a difference to your monthly expenses, and help you put your hard-earned money towards other things!
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