With time-of-use plans, the price you pay for electricity changes depending on the time of day you use it. These plans divide the day into different periods, like peak, off-peak, shoulder, night, or weekends. Electricity is usually more expensive during peak times and cheaper during off-peak times when fewer people are using it.
If you're able to be flexible with when you use power, a time-of-use plan could save you money. Peak times are typically busy periods like mornings when people are getting ready for the day, and evenings when families are home cooking, heating, or relaxing. Off-peak times and weekends often offer lower rates, or sometimes even free electricity!
That said, time-of-use plans aren't for everyone. For many families, it's just not practical to wait until late at night to cook dinner or bath the kids. And doing laundry at odd hours doesn't always fit into everyone's routine.
Take the time to see whether this type of plan works for you and your lifestyle. There's no one-size-fits-all when it comes to powering your home. It always pays to check with your power company to see what's available and find the best plan for your whānau.
A fixed-price plan means you pay the same set price per unit of electricity, no matter when or how much you use. This makes it easier to budget because your bill will stay fairly consistent each month – unless you use a lot more electricity than usual.
These plans often come with a contract, usually for six months or a year, and you're obligated to pay. They're great for households looking for stability, much like a fixed-rate mortgage that protects you from rising interest rates. If you like certainty, a fixed-price plan could be a good fit for your whānau.
A variable plan, on the other hand, usually doesn't lock you into a contract and this can be good for people who are unsure about how long they will be living at their accommodation or who may plan to be there for less than a year. Variable plans are often slightly cheaper upfront, but the price per unit of electricity can change at any time. For example, your bill might go up if the distribution charges (the cost of delivering electricity to your home) increase, or if your retailer decides to adjust their rates. Electricity companies will usually give you at least 30 days' notice before raising prices, giving you time to plan.
Variable plans work best for those who can keep an eye on prices and adjust their electricity use to take advantage of cheaper times. They're a bit more flexible, but that flexibility comes with the risk of price changes. Take the time to consider your lifestyle and priorities – whether it's stability, flexibility, or cost savings.
Your electricity bill might seem complicated, but it’s simpler than you think. Here’s a quick guide:
Your bill includes your name, address, and customer number. If it’s addressed to “The Occupier,” contact your power company to set up a plan.
You’ll see two main charges:
This section lists what you owe, including past charges and any discounts. It also shows your payment due date – paying on time avoids late fees. Struggling to pay? Reach out to your power company for support.
Some bills include a graph of your monthly power use. This helps reveal trends and ensures your usage matches what you're being charged for.
If you’re confused or need support, contact your retailer. For unresolved issues, Utilities Disputes Tautohetohe Whaipainga offers free, independent help.
Your power bill is a mix of costs from generating, delivering, and managing electricity. Understanding it helps you stay in control!
Choosing a plan that fits your lifestyle can make a big difference. Compare options with your electricity company or use tools like Powerswitch, which can help you save money by switching to a better deal.
A warm, dry home saves power:
Simple changes can add up:
Find more tips at tips.energymate.nz.
For more energy efficiency ideas, visit GenLess.
To see if your eligible for a grant to make your home warmer and drier, visit Warmer Kiwi Homes.
Find more information about energy in Aotearoa New Zealand at the Energy Efficiency and Conservation Authority (EECA).
If you’re struggling to pay your electricity bill, here’s what to do:
Acting quickly and contacting your retailer first is crucial – support is available to help you stay connected and manage costs.
Around 38 percent of your electricity bill goes towards lines charges – the cost of transmitting electricity across the country and distributing it locally through pylons, poles, and wires. These charges tend to be higher in smaller, more remote areas because they have fewer people to spread the costs over, and are often further from power stations. This means more infrastructure is needed to deliver electricity to those communities.
For example, in August 2024, the average electricity price in New Zealand was 34.9 cents per kWh, with lines charges averaging 12.7 cents per kWh. In Northland’s Kerikeri, prices were significantly higher at 44.24 cents per kWh for electricity and 19.4 cents per kWh for lines charges.
These differences in population and infrastructure needs are the main reasons electricity charges in Northland are higher than in Auckland.
New Zealand's electricity prices stack up well against other OECD countries. According to 2022 data from the UK Department for Energy Security and Net Zero, New Zealand ranks eighth out of 28 countries for domestic electricity prices and fourth for industrial electricity prices – making it one of the more affordable options in the OECD.
What's even more impressive is that 85-90% of New Zealand's electricity comes from renewable resources, far exceeding most other nations. Unlike many European countries, which can rely on neighbours for electricity during shortages, New Zealand's system is entirely self-sufficient. These factors make New Zealand's electricity system not only competitive but also world-class.
New Zealand’s industrial electricity prices are among the most competitive in the OECD. According to 2022 data from the UK Department for Energy Security and Net Zero, New Zealand ranks fourth out of 28 OECD countries for the lowest industrial electricity prices.
This affordability is largely due to New Zealand’s high reliance on renewable energy sources, which account for 85-90% of electricity generation. Hydropower, geothermal, and wind provide consistent, cost-effective energy for large-scale industrial use.
Additionally, New Zealand’s relatively low reliance on fossil fuels for electricity means industries are less affected by volatile global fuel prices, giving businesses here a cost advantage. For manufacturing, agriculture, and other energy-intensive sectors, this makes New Zealand an attractive place to operate compared to countries with higher industrial energy costs.
When it comes to powering industry, New Zealand's electricity system is both affordable and sustainable – key factors in supporting a thriving economy.
Distribution prices are increasing to support much-needed investment in New Zealand’s electricity networks. The Commerce Commission, which regulates how much Transpower and most lines companies can earn, reviews their revenue caps every five years. In November 2024, the Commission raised these caps, which is expected to add about $10 a month to average power bills from April 2025, with an additional $5 increase each year for the next four years. These increases are separate from any price changes by electricity retailers.
The higher revenue caps allow Transpower and lines companies to invest more in their infrastructure, which is critical for keeping up with growing demand. More people, more electric vehicles, and increased electricity use mean greater strain on the grid. Without this investment, future costs could be even higher, and the network might struggle to meet growing consumer needs.
Another factor is that much of New Zealand’s electricity grid was built decades ago and now requires upgrading or replacement to ensure reliability and efficiency. Rising operating costs, inflation, and higher interest rates have also contributed to the need for increased investment.
While these price increases are challenging, they’re essential to support a reliable, modern grid. Looking ahead, investing in renewable energy sources like wind, solar, and geothermal, along with a more efficient distribution network, will help deliver cheaper and cleaner power for all New Zealanders in the long run.
The wholesale electricity price matters because it impacts how much it costs your energy company to power your home. Retailers pay this price for the electricity they sell to you, so when wholesale prices rise, they may pass those costs onto consumers.
Most people are on fixed rate plans that shield them from sudden changes in wholesale prices, which can be unpredictable.
However, if wholesale prices remain high for an extended period, retailers might eventually adjust their fixed-term rates when new contracts are offered.
Understanding the wholesale price can help you make smarter choices about your electricity plan and be prepared for potential changes in your power bill.
In New Zealand, nearly all new renewable electricity generation is funded by the companies that generate electricity. These companies develop wind and solar farms, geothermal plants, and other renewable projects, ensuring we maintain a world-class, largely renewable electricity system.
These investments are primarily supported by the companies' investors, including the Government, which owns 51% of three major electricity providers. However, part of the cost is indirectly passed on to consumers through gradual increases in electricity charges over time.
This investment is crucial. As our population grows and electricity use expands – think electric vehicles and more energy-dependent technology – new infrastructure ensures the system remains reliable and affordable. Without it, we'd face higher prices and a grid that struggles to meet demand.
In the long run, investing in renewable energy means cheaper, cleaner power for everyone in New Zealand.
The "energy transition" is the shift from fossil fuels like coal and gas to renewable energy sources such as wind, solar, and geothermal, aimed at reducing greenhouse gas emissions and combating climate change.
New Zealand is already advancing this transition, with electricity companies generating more renewable energy and industries adopting electrification, such as electric vehicles and cleaner manufacturing processes. This movement is part of building an "electrified economy," where electricity replaces fossil fuels across transport and industry.
While this shift might bring higher electricity costs in the short-term as renewable infrastructure is developed, long-term costs are expected to drop due to the lower operational costs of renewables. Consumers can also play a role by using electricity more efficiently – shifting use to off-peak times, installing solar panels, or adopting other smart energy habits – all of which can lower costs.
New Zealand's electricity system is already 85-90% renewable, but ongoing investment is crucial to maintain and expand this worldclass network. In the long run, the energy transition means cleaner, more sustainable power, a fully electrified economy, and a greener future for everyone.
To learn more about Aotearoa New Zealand’s electrification journey, visit Rewiring Aotearoa.
Solar systems harness the power of the sun to generate electricity for your home. When the sun is shining, solar panels can provide free energy for your household. If you add a battery system, you can store excess energy to use later. Some homes also feed surplus electricity back into the national grid, earning rewards through a "feed-in" tariff.
However, solar panels aren't a complete solution. On cloudy or rainy days, or at night when the sun isn't shining, you may still need to rely on the national grid for power. While your overall energy usage will be lower, saving you money, you'll still need to pay the fixed charges, like lines fees, on your electricity bill.
It’s worth noting that installing solar panels and batteries can be a significant upfront investment, and not all houses or roof types are suitable for solar systems. However, the cost of solar technology has been dropping, making it an increasingly realistic option for more New Zealand homeowners in the future.
If you’re considering going solar, take the time to research your options. Many electricity providers offer special plans tailored to solar customers, so compare plans to find one that fits your needs and makes the most of your solar setup.
To learn more about Aotearoa New Zealand’s electrification journey, visit Rewiring Aotearoa.
For information about making smart financial decisions, visit Banked.co.nz.
If you're planning to leave your electricity retailer, here’s a step-by-step guide to ensure a smooth transition:
Inform them of your intention to leave and check your contract for details like notice periods, early termination fees, or obligations tied to your current plan.
Use tools like Powerswitch or Power Compare to find a plan that better suits your needs, whether it's cost savings or tailored services.
Once you choose a new plan, contact the provider and give them the necessary details (e.g., address, ICP number from your bill). They will handle the switch, including notifying your current provider.
Your new retailer will oversee the switch process, including scheduling any required meter readings. Some contracts offer a cooling-off period, allowing you to cancel the new contract without penalty within a short timeframe.
Your current retailer will send a final bill based on your last meter reading. Ensure all outstanding balances are cleared.
Both your new and old providers will notify you once the switch is complete. Keep any confirmations for your records.
By contacting your current retailer first and following this process, you can ensure a seamless transition to your new electricity provider.
