Finally - more ways for households to save on electricity

Are you struggling with rising electricity costs, finding your power bill hard to understand, or wondering whether there’s a better plan available?

If so, there’s some welcome news. Changes introduced by the Electricity Authority are designed to make power bills clearer and help residential customers find better-value plans.

Customers’ complaints about electricity plans often centre around two issues:

1. There are cheaper electricity plans on the market, but customers are not aware of them.
2. Electricity bills can be confusing, making it difficult to compare one plan with another.

These issues are being addressed through changes introduced by the Electricity Authority.

The key changes

1. Annual checks for a better plan
Each year, your electricity retailer will need to check whether another plan it offers could cost you less and let you know about suitable options. If you choose to move to a better plan with your current retailer, they must help you change without charging a plan-switching fee. It is still worth comparing offers from other companies.

2. More off-peak pricing options
Large retailers are required to offer time-of-use plans with lower rates during off-peak periods. Shifting some of your electricity use to those times - for example, by running your washing machine or dishwasher then - can help you save. The amount depends on your plan and when your household uses power. Some plans offer off-peak unit rates around half their peak rates, while others offer smaller discounts.

3. Clearer electricity bills
From 30 October 2026, electricity retailers began introducing clearer, more consistent bills, with charges explained in plain language. Retailers have until 1 April 2027 to implement the changes in full. As the changes are rolled out, it should become easier to compare plans and find one that best meets your household’s needs.

4. Limits on back billing
In most circumstances, retailers will be limited to back billing for electricity used in the previous six months. This is intended to reduce the shock of receiving a large bill for an earlier period.

Many homeowners put off comparing plans because bills and usage figures can be confusing. These websites can help you see what may be available for your household:

1. Billy - provided by the Electricity Authority
2. Powerswitch - run by Consumer NZ
3. Canstar - electricity plan comparisons and information

If you would like to discuss these changes or ways to make better use of off-peak electricity at home, contact AB Electrical at office@abelectrical.co.nz. We’re happy to help where we can.