A graphic showing blue-gloved hands holding dental tools over a plate with avocado toast topped with a poached egg. A Red Bull can is nearby. Text says "The Cost of Being," with dollar signs and numbers in the background.
Image: The Spinoff

SocietyMarch 11, 2025

The cost of being: A 25-year-old bar manager who’s in debt to the dentist

A graphic showing blue-gloved hands holding dental tools over a plate with avocado toast topped with a poached egg. A Red Bull can is nearby. Text says "The Cost of Being," with dollar signs and numbers in the background.
Image: The Spinoff

As part of our series exploring how New Zealanders live and our relationship with money, a ‘currently struggling but eternally optimistic’ bar manager and dog sitter shares some spending-and-saving insights.

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Gender: Woman but occasionally questioning it.

Age: 25.

Ethnicity: Pākehā.

Role: Bar manager and occasional dog sitter.

Salary/income/assets: About $500-$600 per week depending on how busy the bar has been. If I’m dog sitting there’s a little extra but it goes quickly.

My living location is: Suburban.

Rent/mortgage per week: There’s three of us, one paying mortgage and two of us paying rent to her. I pay $270 a week inclusive.

Student loan or other debt payments per week: $75 a week in dentist bills, $25 of that going to WINZ and $50 to the dentist. KiwiSaver and student loans average $20-$30 a week. I share my flatmate’s car and most weeks I’m able to send $10ish for the insurance I owe her. Recently that’s been a bit of a struggle.

Typical weekly food costs

Groceries: I put aside $80 for groceries, though sometimes I’ll end up spending more. One of my flatmates and I cook together which helps keep costs down.

Eating out: I try not to eat out much. I try to put away $15 a week for going out, but work’s been slow the past few weeks so I haven’t been able to.

Takeaways: Work nights I’ll sometimes get Maccas on the way home, I always try use one of the deals and try to spend only $10-$15.

Workday lunches: The occasional energy drink from the dairy down the road, and I used to spend $10-$20 once a week on lunch. We get dinner at work sometimes which helps keep those costs down.

Cafe coffees/snacks: I try to make coffee at home, and snacks are part of the money I put away for groceries, I’m a snacky person so about $20 a week. I always try to get the cheapest snacks, but trying to be healthier about my snacking habits has seen the cost of them go up. Why are nuts so expensive?

Other food costs: I’m in the process of making a vege garden for the flat, luckily the home owner has fronted the cost of all the tools so it hasn’t been too expensive for me. The previous owners weren’t all that good at gardening so it’s been a lot of work clearing.

Savings: Any savings I had got wiped out between dental bills and being out of work for a large chunk of 2023. I was trying to get into the film industry before going into hospitality, the money’s better in film but it’s bloody hard to find consistent work. I try to put away any extra I have, but I’ve just found out I need more dental work than I thought.

I worry about money: Always.

Three words to describe my financial situation: Unstable, unlucky, overwhelmed.

My biggest edible indulgence would be: Brunch – even doing something fancy at home on the weekends. Love eggs and avo on toast with a bit of bacon and a good plunger coffee.

In a typical week my alcohol expenditure would be: I’m allergic to alcohol so my spending on it’s zero.

In a typical week my transport expenditure would be: $50 a week for fuel.

I estimate in the past year the ballpark amount I spent on my personal clothing (including sleepwear and underwear) was: I’ve had to get shoes and some decent workwear this year so I would ballpark it at about $400. Some of it was covered by WINZ when I started working at the bar.

My most expensive clothing in the past year was: I got a pair of burgundy two-way work pants from Sük. I love them so much and use them every week, but they cost $111 + $33 for shipping. I used dog sitting money to get them. I don’t regret getting the pants, but I do regret not waiting for them to go on sale.

My last pair of shoes cost: A pair of Skechers that cost $120 on sale. They’re comfy and I had destroyed my last pair, so I really needed them, but everything I’ve bought this year has a bit of regret and doubt attached to it.

My grooming/beauty expenditure in a year is about: $700. I love getting my hair dyed bright colours but I can only afford it about once per year. I try to put a bit away each week so it’s less of a hit.

My exercise expenditure in a year is about: Technically the Skechers could come under this – I use them for walks.

My last Friday night cost: $16 for two Red Bulls.

Most regrettable purchase in the last 12 months was: Most of the things I’ve bought this year have a bit a regret attached. The most regrettable would be some gluten-free bagels I bought my sister, she couldn’t actually eat them because of cross contamination.

Most indulgent purchase (that I don’t regret) in the last 12 months was: Purchasing the game A Little to the Left for my Switch. I’m not a very organised person, but organising all the little things and doing the puzzles has been very calming during this stressful year

One area where I’m a bit of a tightwad is: Spending on my hair. I won’t get it done unless I’ve saved up for it.

Five words to describe my financial personality would be: Currently struggling but eternally optimistic.

I grew up in a house where money was: Tight. When I was a teenager my parents had to borrow money from my savings. We were lucky because we could scrape enough by to send me and my sisters to private school, but we could only afford extracurriculars if grandparents paid for it. My parents tried to start a business to help us financially, but we ended up having to sell the house. It wasn’t their fault, and I don’t blame them for the decisions they made. I just wish it had worked out better.

The last time my Eftpos card was declined was: A week ago, I hadn’t pressed the last button I needed to to move money from my groceries account to my checking account.

In five years, in financial terms, I see myself: Having better savings and a better-paying job. I want to be able to get little things like Patreon subscriptions or merch from my favourite creators. I want to be out of debt with my dentist, and to have paid off more of my student loans.

Describe your financial low: I have needed three root canals and multiple fillings this year, and I need to see a specialist to fix one of them. Insurance can’t cover it, and the specialist has no payment plan like my regular dentist. Brush your teeth kids, and go to the dentist if they ever become randomly sensitive. So far it’s cost me nearly $5,000, and if I go to the specialist it will cost me another $6,000. It’s not a cost you ever think you’ll have in your 20s. My flatmates and I are planning a trip to Thailand because dental work is cheaper there – the flight and treatment would be under $2,000. It’s a little scary, but less terrifying than the idea of trying to pay $6,000 off on a credit card, especially with my current paycheck.

I would love to have more money for: Paying off my dentist bills, travel, and little purchases that bring me joy.

I give money away to: My sisters when I can. When I worked in film I sent them money all the time, but now I’m having to ask them for money some weeks. I’d love to give more to charities but I just can’t afford it.

‘Help keep The Spinoff funny, smart, tall and handsome – become a member today.’
Gabi Lardies
— Staff writer
Keep going!
a black and colourful background that is quite dark with power pylongs outlined in white and woven with piles of coins
For further investment in the national grid, everyone will have to pay more (Image: The Spinoff)

SocietyMarch 10, 2025

Why power prices are rising – and what power companies could do to help

a black and colourful background that is quite dark with power pylongs outlined in white and woven with piles of coins
For further investment in the national grid, everyone will have to pay more (Image: The Spinoff)

Power bills will increase an average of $10 per household  per month from April 1. What do these changes mean for people who are already struggling?

Your power bill will be rising by about $120 over the coming year, with increases continuing annually until 2030 (by when the year-on-year rise will have reduced to about $60). 

That’s a lot, especially when power is already expensive. It’s all because last year, the Commerce Commission agreed to increase revenue limits for Transpower, the national grid company, as well as local lines companies (like Vector in Auckland). The money will be used to invest in the national grid, covering increases in material and labour costs and higher interest rates. 

The price rises will differ depending on where you live and the network provider you are with. The Commerce Commission has set limits for the increases for different transmission companies: OtagoNet could have a $20-per-month increase, and Alpine Energy (Timaru), Top Energy (Kerikeri) and The Lines Company (Te Kūiti) could have a $25-per-month increase for the first year. However, not all companies will charge people this amount: The Lines Company is charging customers an average of $10 per month, one of the lowest increases in the North Island. Most customers will have received a letter or other communication from their power company breaking down the changes. 

Additionally, April 1 will see an increase to the maximum “low fixed charge”, a type of power plan where households that use less than 8,000 kWh of electricity a year (or 9,000 kWh in the South Island) get a discounted power rate. This can apply to households with another source of energy or fuel (solar power, gas, a wood fire as a heater), few residents or small or well-insulated houses.

An Electricity Price Review conducted by MBIE in 2019 found that these low-use charges were unfair, confusing and could encourage people to under-heat their homes. Essentially, how much power you use is not a good indicator of economic disadvantage: a large family living in poor-quality, badly insulated housing might be experiencing economic hardship, but would be using more electricity, not less. Often, households experiencing economic hardship were subsidising people in better-quality houses, or with fewer people living in them.

In 2021, the government agreed to phase out the low-use regulations over five years. But every year since 2022 the maximum low fixed charge has increased by 30 cents a day. In response, a group of power companies pooled $5 million together for a power credits scheme, where people on low-use electricity plans can receive one or two $110 credits if they are finding it hard to pay their power bill. 

While the current price rises are not under the electricity companies’ control, these corporations have been very successful since the electricity companies were privatised in 1999. Contact, Genesis, Mercury and Meridian are staples on the New Zealand Stock Exchange. Contact had a profit of $142.4m in the six months to December 2024 and Genesis had $70.3m. Low hydropower flows meant Meridian had a loss of $121m and Mercury had a loss of $67m over the same period. All power companies made more than a billion dollars of revenue over that same time. 

a big bank of clouds with a nudge of blue sky and a row of large pylons looming the the foreground, their strange metal forms arching over the land
Electricity power pylons stand in Rangipo Desert near the State Highway 1 Desert Road on May 6, 2016 in Waiouru (Photo by Hagen Hopkins)

How power price increases can hurt customers

Kate Day, an advocate with the Everyone Connected campaign, says that people hit by both low-use tariff increases and the general price rises will be most affected by the April 1 changes. “On top of all the other rising costs, it’s a perfect storm of lots of increased prices at once as we head towards winter,” she says. 

Independent power plan comparison tool Powerswitch has also seen nearly twice as many people as usual checking if they can get a better deal, as customers have received notices about price increases – an unusual situation for summer, says manager Paul Fuge. “We know that about 18% of people struggle to pay their power bill – if prices go up by even 2%, there are even more people in that bucket,” he says. 

There isn’t consistent data on how many people have their power disconnected due to financial hardship each year, but Consumer NZ estimated in 2024 that 40,000 houses had been cut off as a result of not being able to pay their power bills. A report from MBIE in 2022 found that 6% of households couldn’t keep their home appropriately warm because of electricity prices. Day points out that most information on power disconnections doesn’t include people on pre-pay power plans, another vulnerable group that will also be impacted by price rises. People are often placed on pre-pay plans when poor credit history means that power companies won’t take them on as a standard customer. The plan pays for a certain amount of electricity; if that amount of electricity is used before the account is topped up, power will turn off. 

a man with a grey outfit and gloves eases a block of pink fibreglass into a wall recess
Insulation can make houses cheaper to heat (Photo: Getty Images)

Power companies have various support in place for customers struggling to afford bills. The big four companies – Meridian, Genesis, Mercury and Contact – distributed more than 11,145 power credits in 2024, a total of $1.2m for customers in need. Mercury has frozen prices for customers in hardship, preventing the April 1 price increases from affecting their bills, and offers support like bill credits and tailored payment solutions. Craig Neustroski, the customer chief operating officer at Mercury, said that as a result of these various schemes, no customers have had their power disconnected as a result of not paying a bill since June 2024. 

Genesis has a range of support for customers in need, including giving away curtains and efficient LED bulbs, proactively contacting people with unusually high bills and offering a “fresh start” to customers who have struggled to pay bills and are at risk of disconnection with free power services, more time to pay and contact with budgeting services and WINZ. Contact provides “energy wellbeing credits” to customers in need and does not charge disconnection and reconnection fees for customers who have had their power cut off due to non-payment. Meridian, whose customers will see an average increase of $18 a month (80% of which is the transmission and lines changes), has an energy wellbeing programme targetting 5,000 households experiencing energy hardship. So far, 2,534 households have been assisted, including having curtains, insulation and heat pumps installed, said Meridian’s chief customer officer Lisa Hannifin. “We’re absolutely committed to looking after any of our customers who may be struggling to stay on top of their payments.”

What it’s like to ask for help

Astrid* is unable to work for medical reasons. She found out about the power credits scheme from an article in Consumer, and realised that she qualified, as she has been on the same electricity plan for a number of years (combined with gas, meaning she didn’t use much electricity). She hadn’t missed any power payments yet, and had recently withdrawn her Kiwisaver for financial hardship reasons. With power prices rising, she contacted her power company. “I spent at least an hour and a half on the phone,” she says. Having worked in call centres herself, she knew to keep advocating for herself, and to ask for her call to be escalated.

 “The person on the phone had no way to help me, they had to escalate to their supervisor, then someone had to go through the transcript from my previous call,” Astrid says. Despite her request, a note about her financial circumstances hadn’t been added to her file, so she had to explain everything again. In the end, though, she was happy with her experience. She was offered an additional 20% discount on her electricity for three months in recognition of her financial circumstances. “I’d advise others to only ring at a time when you are able to sit there for an hour and a half. That would be really hard if you have young kids,” she says. 

The Everyone Connected campaign has four requests for all power companies in an open letter – although Day points out that some are already taking these steps. They’re being asked to proactively check customers are on the right plan for their power usage; to stop charging disconnection and reconnection fees when power has been disconnected due to a bill not being paid; to ensure that prepay plans are the same cost per KWh as post-pay plans; and to serve all customers regardless of credit history. 

Consumer NZ, FinCap, the Child Poverty Action Group and the Citizens Advice Bureau are among the organisations that have co-signed the open letter. Fuge, the manager of Powerswitch (operated by Consumer), says that providing electricity is a vital service, meaning that private companies have to look after their customers. 

“Expensive power can have big societal effects. Kids can’t do their homework, they get cold, there’s more sickness in families, there’s more absenteeism from school,” he says. “People might underheat their home or turn their hot water off – and then there are knock-on effects in the health system.” While the retailers’ support for customers is important, he describes it as “sort of piecemeal – there is no nationwide approach”. 

That makes it all the more important to ensure that people can access what they need, affordably, even though the admin required to switch plan often makes it low on people’s priority list. “Power is a begrudged purchase, people aren’t excited about it – you don’t get excited about a cheaper power bill,” Fuge says. Mandated by government bodies, customers can’t do much about the coming increases. Yet hunting for an affordable power plan can make a big difference. “Electricity isn’t a nice-to-have – it’s an essential.”

This article was updated on 31 March to clarify that while the Commerce Commission has set maximum charge increases for lines companies, companies don’t have to charge that maximum amount. 

‘Help keep The Spinoff funny, smart, tall and handsome – become a member today.’
Gabi Lardies
— Staff writer