John Crook says a 60% rise in off-peak electricity rates weakens his electric vehicle savings. Photo / Rafaella Melo
John Crook says a 60% rise in off-peak electricity rates weakens his electric vehicle savings. Photo / Rafaella Melo
A Hawke’s Bay man says his efforts to reduce his energy costs by switching to an electric vehicle are being undermined by his power company whacking him with a 60% rise in off-peak electricity rates.
John Crook, a Meridian customer, said his electric vehicle (EV) fixed-rate plan – which hehad been on for the previous two years – would increase his 9pm to 7am charges from 12.34c per kilowatt hour (kWh) to 19.75c from May 1.
“I try to optimise my power consumption by using it mostly at night, but I feel as though I have been betrayed,” he told Hawke’s Bay Today.
Crook said he had deliberately structured his rural Napier house around off-peak use, charging his electric vehicle overnight, heating his home only after 9pm and storing energy in his hot water system and concrete floor.
He said he felt penalised for shifting demand away from peak times.
“I don’t get a 45% increase in my pension,” he said.
Crook said he had considered switching providers, but had so far found all other providers were now charging similar night rates to Meridian.
“The Governor of the Reserve Bank and the Minister of Finance are telling us that inflation is under control, and the Commerce Commission and the Electricity Authority are watching out for anyone imposing large price increases. I can tell them where to look.”
Crook, who lives alone and has been with Meridian for about four years, said he expected prices to rise when his fixed-rate plan ended, but not by a 60% rise on off-peak rates.
“They call it the EV plan and give us the cheap rate for charging the EVs,” he said.
“Now, the cost for charging my EV has gone up by 60%. It’s a huge increase.”
He said the increase weakens the cost benefits of an EV, especially as fuel prices continue to climb.
Crook has driven electric vehicles for about a decade and typically charges his car overnight twice a week.
He said his frustration was not just the scale of the increase, but the lack of justification.
“They’re using water and wind, so what’s gone up by 60% to justify that? It’s unjustifiable.
“I really would like to see the off-peak rates kept low. That’s the whole point of these plans.”
John Crook charges his EV overnight at his Napier home twice a week. Photo / Rafaella Melo
Meridian chief customer officer Lisa Hannifin said the changes reflected customers rolling off fixed-rate plans that had not changed for two years, as well as rising costs from lines and distribution companies that are passed on to retailers.
“The level of increase depends on where the customer lives, what plan they are on, and how long it had been since their fixed-rate plan last rolled over,” she said.
“With people feeling the costs of rising fuel prices, we’re here to support Kiwis who want to make the change to electric driving and save money on fuel.
“For EV owners who do their charging at home, a typical overnight charge still costs just a few dollars. Even when road user charges are factored in, EVs are significantly cheaper to run than petrol vehicles for most drivers, alongside lower servicing and maintenance costs.”
