Electricity FAQ New Zealand

How much can I save by switching electricity providers in NZ?

The average New Zealand household can save between $300-$600 annually by switching to the best-priced electricity provider. Savings depend on your current provider, usage patterns, and the rates available in your area.

High-usage households (over 8,000 kWh annually) can save even more, with some customers reporting savings of $800+ per year. Use our calculator to see your exact savings potential.

How long does it take to switch electricity providers?

Switching electricity providers typically takes 10-15 business days from the time you sign up with your new provider. The actual switch date depends on your meter reading schedule.

Your new provider handles all the paperwork and coordinates with your old provider, so there's no interruption to your power supply.

Can I switch electricity providers if I'm renting?

Yes, you can switch electricity providers as a tenant if the electricity account is in your name. You don't need your landlord's permission to change providers.

However, if the landlord pays the electricity bill directly, they would need to make the switch. Check your tenancy agreement to see who's responsible for electricity costs.

Are there any fees for switching electricity providers?

Most electricity providers in New Zealand don't charge switching fees. However, some may charge:

• • Early exit fees if you're on a fixed-term contract
• • Final account fees (usually $10-$25)
• • Connection fees for new properties

Always check with both your current and new provider about any potential fees before switching.

What information do I need to switch electricity providers?

To switch electricity providers, you'll need:

• • Your ICP number (found on your electricity bill)
• • Property address
• • Recent electricity usage (kWh from past 12 months)
• • Preferred start date for the switch
• • Payment method and bank account details

Your ICP (Installation Control Point) number is the most important - it's a unique identifier for your electricity connection.

What is the average electricity bill in New Zealand?

The average electricity bill in New Zealand is $180-$220 per month for a typical household. This varies significantly based on:

• • House size and number of occupants
• • Heating type (heat pumps vs electric heaters)
• • Hot water system (electric vs gas vs solar)
• • Regional network charges
• • Usage patterns and energy efficiency

Small apartments average $80-$120/month, while large homes can exceed $400/month in winter.

What are electricity tariffs and how do they work?

Electricity tariffs are the pricing structures that determine how you're charged for power. In New Zealand, the main types are:

• • Standard tariff: Same rate 24/7 (most common)
• • Time-of-use: Different rates for peak/off-peak times
• • Day/night tariff: Cheaper rates overnight (usually 11pm-7am)
• • Controlled load: Separate circuit for hot water heating

Most households are on standard tariffs, but time-of-use tariffs can save money if you use most power outside peak hours.

What's the difference between fixed and variable electricity rates?

Fixed rates:

• • Locked-in price for 12-24 months
• • Protection from price increases
• • Easier budgeting and bill prediction
• • May have early exit fees
• • Currently 15-20% cheaper than variable rates

Variable rates:

• • Rates can change with market conditions
• • More flexibility to switch providers
• • No fixed-term commitments
• • Currently more expensive than fixed rates

2025 recommendation: Fixed rates offer better value as wholesale prices are expected to remain stable.

Why is my electricity bill so high?

Common reasons for high electricity bills include:

• • Heating costs: Can account for 30-50% of winter bills
• • Hot water: Usually 25-35% of total electricity use
• • Inefficient appliances: Old fridges, dryers, heaters
• • Poor insulation: Heat loss increases heating costs
• • Standby power: Devices left on 24/7
• • High daily charges: Fixed costs regardless of usage
• • Estimated readings: Bills based on estimates, not actual usage

Compare your usage (kWh) to previous periods and similar homes to identify unusual consumption patterns.

What is a smart meter and do I need one?

A smart meter is a digital electricity meter that automatically sends usage data to your provider. Benefits include:

• • Accurate bills based on actual usage (no estimates)
• • Faster switching between providers
• • Access to time-of-use tariffs
• • Detailed usage data and insights
• • Remote meter readings (no home visits)

Smart meters are becoming standard across New Zealand. Installation is usually free and handled by your electricity provider or network company.

What are the cheapest electricity providers in New Zealand?

Based on 2025 rates, the cheapest electricity providers are:

1. 1. Electric Kiwi - 28.5¢/kWh + free hour of power daily
2. 2. Pulse Energy - 29.2¢/kWh + 100% renewable
3. 3. Mercury Energy - 30.1¢/kWh + gas bundling discounts
4. 4. Contact Energy - 31.5¢/kWh + loyalty rewards
5. 5. Meridian Energy - 32.8¢/kWh + renewable energy

Rates vary by region and specific plans. Use our calculator to compare exact costs for your usage patterns.

How can I reduce my electricity bill without switching providers?

Top ways to reduce electricity costs:

• • Heat pump upgrade: 3x more efficient than electric heaters
• • LED lighting: Use 75% less energy than incandescent bulbs
• • Insulation improvements: Reduce heating/cooling needs by 30%
• • Hot water cylinder wrap: Save $100-$200 annually
• • Shorter showers: Each minute saves $50-$70 per year
• • Unplug standby devices: Save $100+ annually
• • Energy-efficient appliances: Look for high energy star ratings
• • Use timers: Heat water during off-peak hours

Should I choose a fixed or variable electricity rate?

For 2025, fixed rates are recommended for most households because:

• • Fixed rates are currently 15-20% cheaper than variable
• • Wholesale electricity prices expected to remain stable
• • Protection from unexpected rate increases
• • Better budgeting with predictable costs

Choose variable rates only if you prefer maximum flexibility to switch providers frequently or expect significant market price decreases.

What electricity rate should I expect to pay?

2025 electricity rate ranges in New Zealand:

• • Best rates: 28-30¢ per kWh
• • Average rates: 31-35¢ per kWh
• • High rates: 36-40¢+ per kWh
• • Daily charges: $0.80-$1.20 per day

Rates vary by provider, region, and contract type. If you're paying over 35¢/kWh, you should definitely compare other options.

Are electricity prompt payment discounts worth it?

Prompt payment discounts (usually 10-22%) can provide good savings, but consider the full picture:

• • Calculate the effective rate: Base rate minus discount
• • Compare with other providers: A low base rate may beat discounted higher rates
• • Consider payment reliability: Missing payments loses the discount
• • Look for automatic discounts: Some providers offer permanent low rates

Example: 40¢/kWh with 20% prompt payment = 32¢/kWh, which might still be more expensive than a 29¢/kWh provider.

What happens if I don't pay my electricity bill?

If you don't pay your electricity bill, the following steps typically occur:

1. 1. Overdue notices: Usually sent 14-30 days after due date
2. 2. Late payment fees: Additional charges applied to account
3. 3. Payment arrangements: Provider may offer payment plans
4. 4. Disconnection warning: Legal notice of potential disconnection
5. 5. Power disconnection: Usually after 2-3 months of non-payment
6. 6. Debt collection: Account may be referred to collection agencies

Important: Contact your provider immediately if you're struggling to pay. Most offer hardship programs and payment assistance.

Can I generate my own electricity with solar panels?

Yes, you can install solar panels and generate your own electricity in New Zealand. Key points:

• • Grid-connected systems: Excess power fed back to grid
• • Buy-back rates: Typically 7-17¢ per kWh for exported power
• • Installation costs: $15,000-$30,000 for typical home systems
• • Payback period: Usually 8-12 years depending on usage
• • Consent requirements: Building consent may be required
• • Provider notification: Must inform electricity provider

Solar makes most sense for homes with high daytime electricity usage and good roof orientation.

What is green or renewable electricity?

Green electricity comes from renewable sources like wind, hydro, geothermal, and solar. In New Zealand:

• • 85%+ renewable: NZ's electricity is already mostly renewable
• • Certified green plans: Some providers offer 100% renewable electricity
• • Carbon neutral options: Offset remaining emissions through forestry
• • Price difference: Usually 0-5% premium for certified green electricity

Popular green electricity providers include Pulse Energy, Meridian Energy, and Mercury Energy's green plans.