Cost of living: Struggling pensioners not heating homes to save on power or going days without electricity

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Social agencies say some people including the elderly are struggling to pay their power bills. Photo / Getty Images

Pensioners in Tauranga crippled by the cost of living are going without power while others in Rotorua are not heating their homes, prompting fears their health will suffer.

“We shouldn’t have to live like this,” says a Western Bay of Plenty woman resorting to rugging up in blankets instead of using her heat pump.

“I never thought we would have to be so frugal on our power as I have a budget on my power bill and I don’t want to go over it. Only appliances that need to be on standby stay on standby. I also have an hour of power from 9pm to 10pm when I put everything on.”

The woman, who asked not to be named, said her husband was old enough to retire but still worked full-time because everything cost more.

“It’s got to the stage where we don’t feel we can both retire and live in New Zealand, which is shocking really.”

A Rotorua pensioner who had solar power at home said he felt for his peers who had to scrimp on power because they could not afford it.

“It’s shocking. They work all their adult lives and get treated like 2nd class citizens.”

He said he conserved power by running appliances during daylight hours to use the solar, air drying clothes outside, using smart lights, and using a wood fire to heat the house and cook.

Bay Financial Mentors manager Shirley McCombe said the cost of power, food, and accommodation was affecting everyone .

“We see people, regardless of age, choosing to go without heating in order to keep their power down.”

Power prices were increasing and the phasing out of low-user tariffs particularly impacted older people living alone, she said.

“I personally have met with older people in Tauranga that don’t have power in their home because it is an expense they believe they cannot afford.”

She said some had poor credit scores and struggled to find a provider. Others had prepaid power but did not have the money to top up so may go days without any electricity.

To cope they often bought food daily or takeaways. They may also run generators, cooked on gas cookers, or barbecues, stored milk in chilly bins and used candles.

“It is heartbreaking, and often these are the people least visible to others and most reluctant to engage.”

Rotorua Budget Advice manager Pakanui Tuhura urged families to visit older relatives regularly to make sure they were okay.

Salvation Army director of community ministries for Tauranga Captain Ralph Overbye said they were seeing more older people unable to pay their power bill.

He said a small number sought support for final power notices and the Ministry of Development had stepped in to help some of these. Others were encouraged to make a payment plan with their power company.

Grey Power Tauranga and Western Bay of Plenty vice-president David Marshall said it partnered with Pulse Energy 10 years ago to provide members with an affordable energy option.

Nationally, retirees with modest savings and living alone in rentals were finding the rising living costs challenging, with their NZ Super payments equivalent to 64 per cent of the minimum wage.

“It is little wonder that a significant proportion of our retirees are resorting to cutting back on balanced diets and having to depend on foodbanks to survive.”

Age Concern Rotorua manager Rory O’Rourke said although its members were receiving the Ministry for Social Development Winter Energy Payment it was not “making a hell of a difference with the increase in power charges”.

“Once upon a time, they didn’t think too much about power. Now they are thinking about when they are going to turn the heater on or use the drier.

“There is certainly a health risk though because if they are cold that can lead to all sorts of things. If you are over 65 and pneumonia strikes it can be quite devastating.”

Toi Te Ora Public Health medical officer of health Dr Gregory Evans said cold houses impacted physical and mental health.

“It is unpleasant and stressful to live in a cold home and it can negatively impact on wellbeing.

“Cold homes increase the risk of respiratory disease, infections, heart attacks and strokes. Older people are also more likely to have chronic conditions that contribute to their risk of severe disease or hospitalisation from pneumonia or influenza.”

He said the flu vaccine was free for those aged 65 and over, and for Māori and Pacific people over 55. The Covid vaccine was free for everyone aged 5 and over.

Acting Interim Te Whatu Ora in Hauora a Toi Bay of Plenty Hospital and specialist services lead Sarah Mitchell said it was working around the clock to ensure every New Zealander gets the care required over winter to support them, their whānau and communities to keep well.

The top three respiratory diagnoses seasonally in the June to August period were chronic lung disease (aka chronic obstructive pulmonary disease), pneumonia and acute bronchiolitis.

“While most healthy individuals experience mild to moderate symptoms and recover within a week or two, older adults, particularly those aged 65 years and above, are at a higher risk of developing severe complications. In some cases, this can be fatal for elderly people.”

“Once again, it is crucial for older adults to receive the annual flu vaccine, practice good hygiene, and seek medical attention promptly if flu-like symptoms develop to minimise the risk of complications.”

Minister for Seniors Ginny Andersen said all superannuants received the Winter Energy Payment automatically and a couple receiving NZ super would receive an extra $63.64 a fortnight. This was in addition to superannuation increasing by 7.22 per cent this year and a couple would receive $102.84 more a fortnight.

“No one should fear catching a winter illness because they can’t afford to turn the heating on,” she said.

Andersen said more than 110,000 installations of insulation and heaters had been done under its Warmer Kiwi Homes Programme.

Figures from the Ministry for Social Development show $2.5 billion had been spent on the Winter Energy Payment from 2018 to 2022. It was designed to help eligible clients with the cost of heating their homes over the winter months.

The Winter Energy Payment is an extra payment to help eligible beneficiaries with the cost of heating their homes over the winter months.

Under its hardship assistance grants, in 2022 the ministry paid $40.4 million to pay for electricity and gas debt compared to $39.9m in 2021. These grants have to be paid back and for the first three months of this year, $8.7m was paid out.

Ministry client service delivery group general manager Jayne Russell said depending on a person’s circumstances, Work and Income may be able to help with any urgent power, gas, water bills, or the costs of heating.

“There is a range of support available and people don’t have to be on a benefit to qualify.”

A Ministry for Business, Innovation and Employment spokesperson said electricity prices were rising in nominal terms but falling in real terms.

The nominal price was the price at the time it was recorded. Real prices accounted for the effects of inflation over time, she said.

Nominal prices increased by 2.51 c/kWh on average from March 2018 to March 2023. Real prices fell 2.87 c/kWh over the same period.

“This means that electricity prices are rising more slowly than overall inflation.”

Powerswitch manager Paul Fuge said an analysis of 42,000 users’ results over winter 2022, showed the median savings through changing power companies on Powerswitch was $385pa.

At the moment it had 17 power companies on its site although there were about 40 nationally.

Fuge said power prices in Tauranga “are a bit shabby”.

“Higher than the national average – which is unusual for a city, where prices are generally cheaper. You would expect Tauranga prices to be more in line with Hamilton or Rotorua.”

Carmen Hall is a news director for the Bay of Plenty Times and Rotorua Daily Post, covering business and general news. She has been a Voyager Media Awards winner and a journalist for 25 years.

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