Electricity Prices Continue to Rise

As alerted to our customers a couple of months ago, the daily charge for a large part of the Auckland consumer market recently doubled.
This increase is going to increase further over the next 3-4 years as part of an agreement with the Government.

The daily charge is unrelated to your electricity consumption, but relates to the power poles, transformers and underground infrastructure that delivers the power to your address.

As a residential consumer, you are facing both increased line charges (daily fixed charge) plus increased cost of electricity consumed–a double whammy!

So what else can you do to minimise the impact of rising electricity costs?

Fortunately, there is an excellent answer in the form of a couple of great websites which allows you to compare the costs of various compani’s services, all from the comfort of a tablet or PC.

Consumer NZ runs one - https://www.powerswitch.org.nz/

A 2nd site is run by a company which also compares the market prices for various services such as internet costs, insurances, credit cards, kiwisaver, etc called Power Compare.

https://www.powercompare.co.nz/p/how-to-switch-power-company

Both are very good at providing you with plenty of useful information to consider in comparing different packages and offers from electricity retailers.

All you will need is one of your electricity bills, which gives you the raw information relating to your consumption, and you can very quickly ascertain savings you can bank as a result of switching suppliers.

Market research highlights the majority of people know they are paying more than they need to, but we are often reluctant to switch, as we are unsure of the process. This is now elegant and easy and these websites have made it so much easier for you to make savings, all so important as we work through a cost-of-living crisis.

If anyone needs a hand with working through how much they can save, feel free to give AB Electrical a call on 0800 688 244 and we can help work this out for you.

Electricity Bills to Rise from 1 April 2022

Aucklanders are currently being notified by their electricity retailer of substantial price increases in their monthly electricity bill.
Consumer NZ estimate 40% of New Zealand households will see a jump in their bills, and the largest increases will affect households who are low users of electricity.

Your power bill comprises two components:

- Fixed charges relate to the infrastructure to deliver electricity to your home (poles/cables/transformers, etc)

- Variable charges which relate to the actual electricity you have consumed

We are aware of some fixed-line charges increasing from $0.33 per day to $0.66 per day–double the current rate. This will cause an increase in fixed charges of $120.00 per annum. These increases will continue to $180.00 per annum by 2026!

The changes come into effect on 1 April this year.

There are several areas where you can reduce your electricity consumption, and the AB Electrical team would be happy to provide our customers with some guidance and advice.

A couple of areas you may want to consider:

1             LED Lights
Upgrade to LED lights from traditional incandescent or halogens. This will reduce the electricity consumed for lighting consumption by at least 70%, plus LED down lights give your home a modern fresh look.

AB Electrical can upgrade to LED downlights with some special promotional packages.

2             Heated Towel Rail Timers
Heated Towel Rails can keep towels dry and warm with only 4-6 hours a day of use, but many homes have their towel rails turned on permanently. As a result, you are paying for electricity you do not actually need to use for 18–20 hours every day. This could save you $500.00 a year.

AB Electrical can add timers to your Heated Towel Rails so you only use them for limited hours a day but still provide warm dry towels when required.

Contact us today to find out how you can save on your Electrical Bills.

Why is my Electricity Bill higher in Winter?

Different factors can affect electricity prices, such as how much electricity you use, how many people in your neighbourhood are using it, and how it was generated.

There are a few reasons why your power bill may increase as the weather gets colder.

1. We use more electricity in winter
For the large majority of people who are on fixed-price contracts, the only reason their bill will go up in winter is that they are using more electricity.

People use more electricity in winter because they want to be warm—they turn on their heaters and electric blankets and take hot showers.

The more electricity you use, the higher your power bill will be.

As you can see in the graph below, a residential area consumes more electricity during the winter months.

Electricity Demand

2. There’s more than just the cost of generating electricity that goes into your power bill
Before it gets to your house, electricity travels from the electricity generator, through the transmission grid (big powerlines in the countryside), and into the local networks (powerlines in your street).

When lots of people use their heaters during a cold snap, lines companies face higher costs because they pay a fee to use the transmission grid—and they have to use the grid more if lots of people are trying to keep warm. Lines companies pass these costs onto retailers, who can choose how to pass the costs onto consumers.

In most cases, electricity retailers buy electricity from the wholesale market and sell it to consumers. When you pay your power bill every week or month, your money isn’t just going to your retailer—portions of your bill also pay for the cost of generating electricity and the cost of bringing it to your house.

Retailers have a number of options about how they set prices for consumers. Some choose to ‘even out’ their price structure, ie, set one price that covers them for changes in the prices over a year. Whereas, others pass on the price of electricity at the time the consumer is using it - often referred to as a spot price contract.

3. Generation costs can change
When electricity consumption increases in winter, generators have to supply more electricity to keep up with demand.

In New Zealand, we rely on renewable generation, such as hydro and wind. And that’s usually enough to keep electricity prices fairly stable because a renewable generation has lower running costs. But when electricity demand increases in winter, we often need to use other fuels to generate electricity.

In these circumstances, thermal generation sources, such as gas and coal, are used to make sure the lights (and heaters and electric blankets) stay on. But gas and coal generation is more expensive to buy and run, and those extra costs are reflected in the wholesale market (where retailers buy electricity to sell to customers). So the retailers may pass the cost onto consumers.

Consumers who have chosen wholesale or ‘spot price’ electricity supply will see their power price change when generation costs change. These people make up around two percent of households.

Source: Electricity Authority

6 Facts About Solar Energy

Solar energy is all the rage. What could be more extraordinary than getting the power that heats our homes, charges our devices, and makes all of modern life easier... directly from the sun? So here are 6 facts about Solar Energy.

Our sun is powerful. Not only is its energy virtually inexhaustible, but it’s also the most abundant source of energy on Earth. .

  1. One hour of sunlight is equivalent to one year’s worth of energy for the planet. It’s estimated that 174,000 terawatts of solar energy is constantly hitting the earth’s surface. That’s greater than 10,000 times all the energy being used around the world!

  2. Since 2013, Solar installations in NZ have reduced by 20%.  A 3kW system that cost $11000 in 2013, cost on average $9000 in 2019. -
    Source:  Westpac
  3. Solar Energy produces no pollution when generating electricity.

  4. Solar is the fastest energy source to deploy - when disaster strikes, no electricity source can be built or repaired as quickly as solar.
    Source: Tesla helps with Recovery

  5. Solar panels don’t need direct sunlight to generate electricity.

  6. The most efficient solar panels are made from monocrystalline silicon.

If you are thinking seriously about getting solar power installed in your home and these facts about solar energy have inspired you, talk to your local experts.  AB Electrical can help find the right solutions for you.  Give us a call today.  0800 688 244

5 Electrical Tips for Keeping Cool this Summer

To keep cool this summer, it is best to use a combination of methods to cool your home and limit your power consumption. Here are 5 electrical tips that are energy-efficient methods you can implement this summer.

  1. Free Options to reduce electricity are:

Source:  Genless 

  1. A Fan costs around 5 cents an hour

Tip: Set your fan up next to an open window and point it outside in the evenings. Open another window on the shady side to let cool air in.  This will remove the warm air in your home and replace it with cooler air.

Source: Stuff 

  1. Use your Heat Pump in Fan Mode:  The cool mode on your heat pump uses around 25cents an hour, while fan mode is the same cost of running a standard fan.

Source: Stuff

  1. When using cool mode on your heat pump–set the thermostat to 20-22C to maintain a consistent temperature.  This will make the heat pump work less, saving your money in the long run.  Shut your doors and windows when using your heat pump.  Turn the heat pump off when you are not using the room.

Source:  Genesis Energy

  1. Only cool the areas of your home that people are in.

If you would like to further cool, ventilate or heat your home, give the team at AB Electrical a call today.  0800 688 244

USB Charging Power Points

Charging our devices with USB ports is becoming increasingly the most convenient means of charging electronic devices at work or at home. The past few years have seen a move away from charging leads that feature dedicated three-pin plugs to leads with a USB connection attached.  These devices range from our laptops, tablets, mobile phones, to even our electric toothbrushes.

Most devices come with an adaptor that plugs into our normal power points, this means we must have extra adaptors for other rooms in our house.  How many times have you lost your power adapter or left it at work?

The main benefits of USB power points are:

AB Electrical can show you a range of USB charging power points that you can install in your home or office.

Understanding your Home Electrical System

Have you ever wondered how electricity from the power network gets into your home electrical system? Well, it’s not magic, but pretty close with modern technology.

The power supply from your power company, comes into your home either via an underground cable or a power line.  These are known as service lines.

Meter Box

The service line then connects to a meter box on the side of your home.  This meter box then measures how much electricity is being used, so that the Power Supply company you are with, knows how much to charge you for power.

Many homes now have smart meters – that communicate directly with the power company.  This records the flow of energy in both directions, so if you had solar energy – you could sell back to the grid.

Switchboard

The switchboard is where the power gets distributed around the house. The service line comes in from the street via the meter box and then on to the switchboard. From there, it then gets distributed throughout your house in smaller circuits that are then protected by circuit breakers/fuses/RCD’s. The switchboard serves as the main junction point that provides protection for all of your internal wiring.

Four Must have Devices in your Home Electrical System

  1. Circuit breakers - the purpose of a circuit breaker is to protect your wiring under fault condition or when current is drawing more than the rated circuit breaker.
  2. RCD – Residual Current Device - is a life-saving device which is designed to prevent you from getting a fatal electric shock if you touch something live, such as cutting through a live wire behind a wall.
  3. Arc Fault Protection - A new addition to electrical home safety devices is the Arc Fault Protection device. These soon to be compulsory devices are effective at protecting your home and family in the event of an unknown short circuit by being able to accurately detect electric arcs that regular circuit breakers are simply incapable of detecting.
  4. Surge Protection -A surge protection device will act to protect all of your electrical appliances in the event of a sudden and unexpected electrical surge due to a lightning strike, power surge, voltage spike or extreme weather.

Many older properties do not have all of these protective devices installed and, sometimes, they only require you to install when additional work is undertaken.  AB Electrical would be happy to review and advise you on your options and obligations.  Insurance companies are asking prospective homeowners for confirmation of electrical wiring status, and AB Electrical is happy to help either a prospective buyer or a homeowner who is thinking of selling.  Feel free to contact AB Electrical on 0800 688 244.

Home Office Energy Savings

Home office energy savings are free and easy. You don't have to have a huge power bill, just because you work from home.

Office lights and equipment

Setting up an office

Choose a small space for your home office that can be easy to heat on its own.  You may not have the luxury of choosing where to site your home office but try moving your desk to a position that gets good natural light.

Heating and cooling

Get the best energy price

Talk to your energy supplier to make sure you’re on the right pricing plan for your home. You might want to shop around using a comparison site such as Consumer's Powerswitch to find and compare the best electricity and gas deals for you.  Talk to AB Electrical today if you have any concerns regarding your electrical bills, phone 0800 688 244.

Simple ways to lower energy bills

Here are some simple things you can do to save money on energy bills while making your home warmer and healthier.

Tips for a warmer, healthier home

Keep your home warm

Heat is expensive, so save money by keeping the cold air out and the warm air in.

Windows and doors

Heating

Keep your home dry

Get rid of moisture and dampness in your home, especially when you're cooking and washing.

Outside

Inside

Save on lighting

Lighting is one of the easiest places you can save energy around your house.

Save on hot water

Heating water is expensive, so using less hot water has a big impact on your energy bills.

Save on appliances

 

Standby power

Appliances left on standby can cost you more than $100 a year on your power bills. Major culprits are home entertainment appliances, like TVs, stereos, game consoles and computer equipment. Plug them all into multi-plug boards so they can all be turned off properly at the same time. Turn off other appliances like whiteware at the wall too.

Heated towel rails

If you have a heated towel rail, only use it when needed. A heated towel rail left on 24/7 can cost you $170 per year to run. You can buy timers for towel rails that come on automatically at certain times of the day.

Fridges

If you have a second fridge only to chill a few drinks, it could cost you $200 a year to run if it’s an old, inefficient model. Consider turning it off or getting rid of it. Check your fridge door seals - if the door doesn't seal properly, your fridge will use more energy than it needs to. Depending on the age and condition of the fridge, get new seals fitted or replace the fridge. Source: Energywise