Electricity demand has decreased in Otago and Southland while residential electricity prices have been rising.
As a result, elderly people are having to choose whether to spend
their money on their health or their power bill, Grey Power Central Otago secretary Jacqueline Goyen says.
The latest New Zealand Energy Quarterly revealed that the demand for electricity in Otago and Southland fell 5% for the year ending June.
Yet a recent Ministry of Business, Innovation and Employment (MBIE) report showed that nationally residential electricity prices had increased by 3% in the past year, more than four times the rate of inflation.
The most expensive electricity price region was South Otago, the report said.
Mrs Goyen said many pensioners were adapting their lifestyles to work around high electricity costs.
''They go to bed early and they walk around [inside] with their coats on so they don't have to have the heat up too high. It is a problem and it does need to be faced up to.''
The colder housing meant more pensioners visited the doctor with chest infections, such as pneumonia.
Some adaptions by the elderly were compromising their health.
Electricity costs accounted for a large ''chunk'' of a pensioner's income and many could afford to eat only cheap and unhealthy food.
''At times, it can mean you choose between the good food and the not so good food.''
Greater financial pressure was put on pensioners when the Otago Regional Council banned traditional woodburners and promoted the installation of heat pumps.
The Government should provide cheaper electricity to pensioners, she said.
''It would help; it would really help.''
The Electricity Authority chief executive Carl Hansen said although the report revealed an increase in residential electricity prices, the rise was smaller than past increases.
The smaller increase could be a result of weaker demand for electricity, he said.
Otago had some of the most expensive electricity retail prices in New Zealand because of the costs associated with distributing it to a sparse population, he said.
''You've got a much thinner population down there so the cost of distribution may be higher per user.''
MBIE infrastructure and resource markets group acting manager Bryan Field said although many people were struggling to pay their power bill, the drop in demand was from commercial usage, rather than residential.
''[The demand decrease] is Tiwai Point [aluminium smelter] through and through in Otago and Southland and the scaling down of their production is effectively the 5%.''
Labour leader David Cunliffe said about 19,245 households had their power disconnected in the first half of 2013 because they could not afford to pay their electricity bills.
''It is tragic that people in New Zealand are forced to go to bed early to avoid putting their heaters on.''
A Labour government would bring down power prices and people would not have to choose between their health and their power bill, he said.
