Retail & You
What's in your power bill, how to compare plans, and how to pay less.
The Retail Market at a Glance
How NZ households buy electricity
Major Retailers
| Mercury | Gentailer (51% govt) |
| Meridian | Gentailer (51% govt) |
| Genesis | Gentailer (51% govt) |
| Contact | Gentailer (private) |
| Nova | Independent retailer |
| Electric Kiwi | Independent retailer |
Average Prices (2024/25)
| Residential | ~39c/kWh |
| Commercial | ~21c/kWh |
| Industrial | ~14c/kWh |
| Average household use | ~8,000 kWh/year |
| Average monthly bill | ~$230-280 |
Prices inc. GST. Vary significantly by region.
Sources: Electricity Authority, MBIE, Consumer NZ Powerswitch, GlobalPetrolPrices
What's in Your Power Bill?
Breaking down where your money goes
What You Can Control
- Which retailer you use
- Which plan type — fixed, variable, spot, ToU
- How much electricity you use
- When you use it (for some plans)
What's Fixed For You
- Your lines company — based on location
- Lines charges — regulated by Commerce Commission
- Transmission charges — set by Transpower
- GST — 15%
Common Charge Types
| Charge | What It Is | Typical Range |
|---|---|---|
| Fixed/Daily charge | Flat fee per day, regardless of usage | $1.00 – $2.50/day |
| Variable/Usage charge | Per kWh of electricity used | 25 – 45c/kWh |
| Controlled rate | Lower rate for interruptible hot water | 15 – 25c/kWh |
| Night rate | Off-peak rate (typically 9pm-7am) | 12 – 20c/kWh |
Sources: Electricity Authority, Commerce Commission, Electricity Networks Aotearoa
Understanding Plan Types
Choosing the right plan for your household
📋 Fixed Rate Plans
Pay the same rate per kWh regardless of market conditions. Most common plan type — around 90% of households. Prices may be fixed for 1-3 years or open-ended.
📊 Spot Price Plans
Pay wholesale spot prices (updated every 30 mins) plus a margin. Prices can range from near-zero to $800+/MWh. Best for flexible, engaged consumers.
⏰ Time of Use (ToU)
Different rates for peak and off-peak times. Peak usually 7-11am and 5-9pm weekdays. Off-peak can be 30-50% cheaper. Good if you can shift usage.
🚗 EV & Night Plans
Designed for EV owners and those who can shift usage to night hours. Some offer rates up to 50% off standard between 9pm-7am.
Which Plan Suits You?
| Household Type | Suggested Plan | Why |
|---|---|---|
| Budget-conscious, predictable | Fixed rate | Stable bills, easy to budget |
| EV owner, home during day | EV/Night plan | Cheap overnight charging |
| Works from home, flexible | Time of Use | Shift usage to save |
| Tech-savvy, risk-tolerant | Spot price | Highest savings potential |
| Low user (<8000 kWh/yr) | Low-user plan* | Lower daily charges |
| Bach/holiday home | No daily charge plan | Only pay when there |
*Low-user tariffs are being phased out by 2027. Current low-users may get a one-off Power Credit.
Sources: Electricity Authority, Consumer NZ, MoneyHub, Meridian Energy, Contact Energy
Switching Retailers
It's free, takes 10 minutes, and could save you hundreds
Powerswitch
Free, independent comparison run by Consumer NZ. Covers 97% of the market.
powerswitch.org.nz →Before You Switch — Checklist
- Have a recent bill handy (shows your usage and current rates)
- Know your ICP number (on your bill — identifies your connection)
- Check if you're on a fixed-term contract (may have exit fees)
- Consider your meter type (smart meter opens more options)
- Look at annual cost, not just rates (fixed + variable)
- Factor in sign-up bonuses (but year 2+ costs matter more)
Sources: Consumer NZ, Electricity Authority, MBIE
Saving Money on Power
Practical steps to reduce your electricity costs
🔄 Switch & Negotiate
- Compare annually — prices change, check once a year
- Call your retailer — ask about cheaper plans or retention offers
- Look for sign-up credits — $100-200 common for new customers
- Set up direct debit — typically 1-2% discount
⏰ Shift Your Usage
- Run appliances at night — dishwasher, washing, EV charging
- Use solar midday — if you have panels, use power when generating
- Hot water on controlled — cheaper rate, rarely notice interruptions
- Weekend usage — off-peak on most ToU plans
🏠 Reduce Overall Usage
- Heat pumps beat resistance heaters — 3-4x more efficient
- LED lighting — uses 75% less energy than incandescent
- Insulation & draught-stopping — keeps heat in, power bills down
- Hot water cylinder wrap — reduces standby losses
- Shorter showers — hot water is 30% of average household use
- Standby power — switch off at the wall, save 5-10%
- Full fridge/freezer — runs more efficiently when full
- Heat pump at 18-20°C — each degree higher costs more
Sources: EECA GenLess, Consumer NZ, Electricity Authority
Support & Hardship
Help if you're struggling to pay your power bill
❄️ Winter Energy Payment
Automatic weekly payment from Work and Income during winter months (May-October).
💳 Power Credits Scheme
One-off credits for low-use households facing hardship during the low-user tariff phase-out.
🏠 Warmer Kiwi Homes
Government grants for insulation and heating to reduce ongoing costs.
📞 Hardship Support
Contact your retailer's hardship team — they're required to work with you.
Useful Contacts
| MoneyTalks | Free budgeting advice | 0800 345 123 |
| Utilities Disputes | Free dispute resolution | 0800 22 33 40 |
| Citizens Advice Bureau | General consumer advice | 0800 367 222 |
| Work and Income | Benefits & Winter Energy | 0800 559 009 |
Sources: Work and Income, MBIE, EECA, Electricity Authority, ERANZ