21 May 2012

Winter Power Bills are Coming

Winter power bills are coming and you need to prepare, says Raewyn Fox, CEO at the Federation of Family Budgeting Services. “Over winter, a typical home power bill increases by 75%. This means that if you’re not budgeting to cover this increase, you may find it extremely difficult to cope.”

Across the country temperatures have already dropped dramatically and budgeting clients are beginning to feel the pinch. “We always have a number of clients coming to us over winter and power bills can be a huge concern,” Fox said. “The problem is, we tend to see these clients as winter is beginning to ease. That’s too late - they’ve spent the start of winter accumulating big power bills and not paying them. By the time they come to see us they’re already in significant difficulties. Last year across the country budgeting clients owed over four million dollars to utility providers.”

“We need to get the message out there that you must budget for increased power bills over winter. This means putting aside a little each month over summer and autumn so you have enough in the kitty to afford your winter bills. For many of our clients that is much easier said than done, as they only just have enough over summer.” This is why it’s essential to see a budget adviser as early as possible. “A budget adviser works with a client to ensure they’re getting as much income as possible, and managing their expenses as best they can. Budget advisers can help clients work out where they might be able to save on electricity and gas, including investigating insulation schemes, curtain banks, and generally being aware of where your power is going,” Fox said.

One of the key tools in a budget adviser’s arsenal is a cashflow forecast. “A cashflow can look a little intimidating at first,” Fox said, “but a budget adviser can step you through it. A cashflow plans out your income and expenditure for the next 52 weeks, week-by-week. This means a client can plan for bills when they are due and ensure they have the money set aside to pay them.”

“In addition, we recommend that our clients adopt some of the energy saving tips available on www.eeca.co.nz, such as short showers, turning down your hot water thermostat to 60 degrees Celsius, switching from warm to cold water washes on your washing machine and using your dryer a little less.”

“We do not want to have our clients freezing this winter, or becoming indebted in order to keep warm. It’s time to put aside some money to allow for increased power bills over winter,” Fox said.

Budgeting advice is offered free through the New Zealand Federation of Family Budgeting Services, with over 150 locations throughout the country. You can find your nearest budgeting service by visiting www.familybudgeting.org.nz or calling 0508 BUDGETLINE (283 438).

About the NZFFBS Inc:

The NZFFBS Inc is a collective of community organisations that share a common code of ethics, philosophy, and commitment to delivering quality, free budgeting advice to families/whanau and individuals. The current membership comprises 150 budget services throughout New Zealand that employ over 1500 predominantly volunteer staff, who worked with over 41,000 clients last year. For free budgeting advice call 0508 BUDGETLINE (283 438).

ENDS

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