Prompt payment discounts are really just hidden late payment fees - Minister Woods

Ryan Bridge 03/10/2019

Energy Minister Megan Woods announced on Thursday the Government's response to the final Electricity Price Review which recommended prohibiting prompt payment discounts but allowing "reasonable" late fees. 

Woods said the Government welcomes the recommendation, but rather than immediately regulate retailers, she will write to the industry with the "expectation they make discounts available to all consumers.'' 

What we do know with some of the immediate changes people will see their power bills come down quite quickly.

"The report shows that those who have not made the switch [in energy providers] things aren’t going so well for them."

"What we have is 103,000 people who are living with energy hardship in New Zealand."

When asked about the Government's consideration of removing prompt payment discounts, Woods disputes that removing the discounts would be unfair to those who pay early.

What this is doing is a hidden late payment fees.

"Lets just extend those lower rates to people all the time and not a have a two tiered pricing system."

"Nobody that is receiving the prompt payment discount is in anyway going to be penalised."

You can listen to the full interview above.