Power companies declined nearly 47,000 requests for post-paid electricity connections last year, citing customers’ poor credit ratings, the national Electricity Authority has disclosed. The authority, which regulates the sector, requires power providers to disconnect existing customers only as a last resort, highlighting a gap in service access for new customers facing credit challenges.

Juliane Tandy, Wellington operations manager of the Citizens Advice Bureau, noted that a frequent issue her organisation encounters is power companies refusing standard post-paid connections to new customers with poor credit histories. This often compels these customers to opt for pre-pay electricity plans, where service is discontinued if credit runs out and advances payment, potentially cutting off households unable to pay upfront.

In response, the Electricity Authority expressed its intent to gather consumer feedback to understand difficulties people face in accessing electricity and finding suitable plans. Authority consumer manager Andrew Millar acknowledged that while most consumers can choose from a variety of power companies and plans, some individuals encounter obstacles due to credit issues or outdated electricity meters.

Millar said the authority aims to ensure the electricity system works inclusively, enabling better access and more options for all users. He pointed out that while pre-pay plans are available to some, these may not suit everyone’s needs. Additionally, older metering technology can restrict access to newer services, such as time-of-use pricing, which may help manage energy costs. The authority also noted that credit and metering complications often overlap, limiting practical choices for some consumers.

Bridget Abernethy, chief executive of the Electricity Retailers’ and Generators’ Association (Erganz), stressed that the nearly 47,000 declined connection requests may represent multiple attempts by individuals across different retailers rather than unique households. She welcomed the Electricity Authority’s focus on expanding consumer access and choice while emphasising the shared priority of protecting vulnerable customers from financial hardship.

Abernethy suggested that credit checks, while sometimes leading to declined post-paid connections, serve a protective role by reducing the risk of customers accruing unmanageable debt. She advocated for collective retailer responsibility in supporting vulnerable consumers, including providing appropriate assistance and tools to manage debt.

The Electricity Authority’s ongoing consultation aims to explore options for improving access to electricity services and plans, particularly for consumers facing credit challenges or technical constraints, seeking to create a more equitable and manageable energy system.