A Marlborough Sounds homeowner is grappling with a staggering 600 percent increase in their power bill, prompting serious consideration of going off-grid or selling the property altogether. The property owner has estimated that their annual electricity bill could exceed $3,000 if they spend just 60 days a year at the home, a secondary residence in a remote area.
The rising costs are attributed to a combination of factors, including recent decisions by the Commerce Commission, which approved transmission price increases starting April 2025. This has led to significant hikes in lines charges across the country. For this particular homeowner, the local lines company has classified their property as remote, resulting in a daily charge increase from $3.11 to $4. Previously, only 60 cents of this fee was passed on to customers under a low-user plan, which is no longer available due to the remote classification.
According to the homeowner, who wishes to remain anonymous, "I am seriously considering going off-grid if I keep the property, though selling is definitely an option. Property values will likely drop, though, as the appeal of owning a property where supply is so expensive will wane." This sentiment reflects a growing concern among homeowners in remote areas about the sustainability of maintaining their properties amid rising utility costs.
The challenges do not end with increased daily charges. The homeowner has been informed by Genesis Energy's call center that there is no option to suspend supply when the property is unoccupied for several months, meaning daily charges will continue to accrue regardless of usage. Additionally, decommissioning the service would also incur a charge, making it even more difficult for property owners to manage their expenses.
As the low-user scheme is phased out, affected customers are facing an additional 30 cents per day increase in fixed charges. This change has left many questioning the fairness of the pricing structures in place for remote connections. Mark, the homeowner, noted that he was quoted up to $30,000 to transition to an off-grid system, which could potentially pay for itself over a decade, but the upfront cost remains a significant barrier.
Genesis Energy has acknowledged that the price increase for this particular homeowner is heightened due to their specific circumstances. The local lines company, Marlborough Lines, has stated that if the connection was classified as remote, it should have been on its remote price plan from the outset. However, due to a ministerial exemption, they are not obligated to offer low-user prices to remote connections.
Marlborough Lines explained that the daily fixed charge for remote connections is considerably higher than that of low-user plans. Paul Fuge, the general manager of Powerswitch, added that there is no obligation for power companies to provide a low-fixed charge option to baches, or secondary residences. He emphasized, "When customers sign up with a retailer, they are usually asked whether the property is their primary residence. However, it’s unclear what verification processes – if any – retailers use to confirm this."
Fuge also indicated that while it’s unlikely for retailers to remove a household from a low-fixed charge option based on a determination that the property wasn’t a primary residence, it remains a possibility. He noted, "In our experience, some retailers and lines companies are more diligent than others when it comes to checking this." However, he added that it is rare for households already on a low-fixed charge option to be removed based on such determinations.
The situation underscores the broader issues affecting electricity pricing in New Zealand, particularly for those living in remote areas. As costs continue to rise, homeowners are left to navigate increasingly complex pricing structures while considering their options for energy supply.
For many, the prospect of going off-grid is becoming a more viable option despite the initial investment required. With the potential for self-sufficiency and reduced dependence on traditional power suppliers, more homeowners may start to explore this avenue as a way to combat rising utility costs.
As the debate over energy pricing continues, it is clear that homeowners in remote areas like Marlborough Sounds are feeling the pinch. With property values likely to decline as the appeal of owning such properties diminishes, many are left wondering what the future holds for their investments. The complexities of energy supply in these areas are not just a financial burden; they also raise questions about the sustainability of living in remote locations amid shifting economic landscapes.
