Support available
Removing the Low Fixed Charge Tariff regulations is essential for creating a fairer playing field for all New Zealand households. While all households are expected to benefit in the long term from the regulations being removed, some households may face higher power bills.
On this page
Your power company can help
Anyone struggling with their power bills, or who has questions about their pricing plan, is encouraged to contact their power company in the first instance.
Power credits scheme
The power credits scheme is a $5 million industry-funded scheme that opened in June 2022.
The scheme supports low electricity-use households finding it hard to pay their power bills as the Low Fixed Charge Tariff regulations are phased out.
Phasing out of the Low Fixed Charge Tariff regulations
Electricity providers in the power credits scheme
Contact Energy, Genesis Energy, Mercury, Meridian Energy, and Nova Energy and Toast Electric are the electricity providers in the scheme. Other electricity providers may join the scheme and customers should check with their electricity provider for more information.
How electricity customers get a power credit
Power credits are only for customers at their main residence.
Customers can get a $110 power credit from their electricity providers if they:
- are finding it hard to pay their electricity bill
- have been on a low-use electricity plan within the last 6 months, and
- have had a recent price rise.
Customers who have had professional budgeting advice may be eligible for a second power credit in the same 12-month period.
Customers can get up to 2 credits in a 12-month period.
Power credits paid as of June 2023
As of June 2023, 8,090 power credits had been distributed, representing a total of $890,000 in direct support for households finding it hard to pay their electricity bills.
The funding of the power credits scheme is split equally between the:
- Electricity Networks Association, which represents all electricity distributors, and
- Electricity Retailers’ Association of New Zealand, whose members collectively sell electricity to about 90% of New Zealand homes and businesses.
Other support
There are other government programmes already in place to help households make their homes more energy efficient and lower their power bills. These include:
Warmer Kiwi Homes
Pays 80% of the total cost of ceiling and underfloor heating, and an approved heater for low-income home owners.
Warmer Kiwi Homes(external link) — Energy Efficiency and Conservation Authority
Winter Energy Payments
Extra payments for beneficiaries to help with energy costs from May to October every year.
Winter Energy Payments(external link) — Work and Income
Support for Energy Education in Communities (SEEC) Programme
Nearly $8 million has been committed to expand the existing network of community-level support services that help people experiencing energy hardship achieve warmer, more energy-efficient homes and lower their energy bills.
Support for Energy Education in Communities Programme
Free budgeting advice and support
There are financial mentors who can help households manage their finances.
Building financial capability(external link) — Ministry of Social Development
Consumer Care Guidelines
Electricity retailers following the Electricity Authority’s voluntary Consumer Care Guidelines will proactively work with their customers facing payment difficulties to help them access and afford a constant supply of electricity to meet their household’s needs.
Under these Guidelines, consumers can also nominate a support person to help them work through issues relating to their electricity supply with their retailer. Retailers should also make information easy to access and provide advice to help them make informed decisions about the best options to meet the needs of their household. All electricity retailers are expected to be following the guidelines by the end of the year at the latest.
Consumer care guidelines(external link) — Electricity Authority | Te Mana Hiko
Longer–term initiatives to reduce energy hardship
The government recognises energy hardship is a very real problem in New Zealand and is laying the foundation for further initiatives to better support people struggling with their power bills.
For example, MBIE has developed an agreed definition of energy hardship and an initial set of measures to understand levels of energy hardship and monitor it over time. This will assist with identifying those who may be experiencing energy hardship and assessing the effectiveness of initiatives aimed at supporting those households.
The independent Energy Hardship Expert Panel has been established to recommend policy priorities and actions to alleviate energy hardship in New Zealand.
MBIE has also established an Energy Hardship Reference Group to provide a forum to share information and encourage coordination across industry, NGOs and government agencies. The Group will help government work with others in its work to alleviate energy hardship.
Energy hardship expert panel and reference group
The Consumer Advocacy Council is the independent advocate for small business and residential electricity consumers. The Council commissions research and analysis, makes submissions on consultations and policy announcements, speaks publicly to bring the consumer voice to key issues, and regularly meets with regulators, industry and other consumer agencies.
Consumer Advocacy Council(external link) — cac.org.nz