I’m on a Low Use plan, what does this mean for me?
Your Low User daily fixed charge (currently around 30 cents per day excl GST) will increase gradually over the next 5 years. The maximum amount of increase to the daily fixed charge each year is 30 cents per day excl GST.
Why are these changes being made?
The low fixed charge tariff regulations were introduced in 2004 with the intention to reduce power bills for low-use, low-income households.
The Government’s Electricity Price Review in 2019 determined that the low fixed charge tariff regulations weren’t working in the way that was intended. They only helped some low-use households while pushing others into greater energy hardship, including many low-income families with high electricity use. The low daily fixed charge was also seen to benefit households who were able to afford to be more energy efficient – through energy efficient appliances, double glazing and solar panels.
Phasing-out low fixed daily charges was a recommendation to government by the independent Electricity Price Review. The Review further recommended the regulations be phased out over 5 years.
Find out more
More information on the low fixed charge tariff regulations can be found on the Ministry for Business, Innovation and Employment’s website.
Your electricity charges
How do you calculate my electricity charges?
There are two components to your power bill:
- Daily fixed charge – a set daily amount, shown on your bill as cents per day.
- Variable usage charge – the per unit (kilowatt hour) cost of the electricity you use.
Electricity pricing plans
Currently there are two pricing plans for the home you live in most of the time – the Low User Plan and the Standard Domestic Plan.
- Low User Plan - offers a lower daily fixed charge and higher variable usage charge compared to the Standard Domestic Plan and is a good option if you use less than 8,000 units (or 9,000 in parts of the South Island) of electricity each year in your primary place of residence. The Low User plan is not available for holiday homes or businesses. See above for information about changes to the Low User plans.
- Standard Domestic Plan – has a higher daily fixed charge and lower variable usage charge compared to the Low User Plan. This is a good option if you use more than 8,000 units (or 9,000 in parts of the South Island) of electricity each year.