Source: Consumer NZ
While hundreds of thousands of New Zealanders struggle to keep the lights turned on, a little-known protection could save people money. Just ask: Am I on the best plan?
Consumer NZ’s annual Energy Retailer Survey has revealed one in five households (around 400,000 households) struggled to pay their power bill in the past year. And that was before prices increased by an annual average of 11%.
“Our Consumer Sentiment Tracker shows that financial concerns about the cost of energy are now top of mind for almost half of New Zealanders,” said Jessica Walker, Consumer’s acting head of research and advocacy.
According to the advocacy organisation, these financial struggles create a ripple effect in the form of late fees, people turning elsewhere to find the funds to keep the lights on, and in the worst cases, disconnection from power.
“About 300,000 households had overdue fees added to their bill because they couldn’t afford to pay their power bills on time last year.
“Around 150,000 households had to take out a loan to cover their power. That doesn’t include people who borrowed from family or friends.
“Most concerning of all, our April 2025 survey shows that about 50,000 households had their power disconnected due to unpaid bills in the previous 12 months,” Walker said.
A ray of light
A key change that took effect in April was the Electricity Authority’s introduction of the consumer care obligations (CCOs). The CCOs are mandatory rules that govern how electricity retailers communicate with and support their customers. They outline that disconnection should be a last resort and set out the steps that must be taken before, during and after disconnection.
Consumer found only one-quarter of New Zealanders were aware of these protections.
“The introduction of the CCOs is a win for consumers, but people can’t exercise their rights if they don’t know they exist,” said Walker.
Just ask: Am I on the best plan?
On average, people who use Powerswitch to compare energy providers find they could save around $400 a year by switching. But not everyone wants to or can switch power provider.
Consumer’s energy retailer survey found that about 155,000 people had been turned down as a customer by an electricity provider because of previously missed payments.
“There’s a significant number of people who can’t switch because of a poor credit record. That means they either have to stick with their existing provider, or switch to a prepay plan, which carries a greater risk of disconnection,” said Walker.
Under the CCOs, an electricity retailer must tell their customers, when asked, about any plans it has that would be better for them.
There are only two occasions when an electricity retailer must voluntarily tell a customer about a plan it offers – when the customer is signing up or if the retailer knows the customer is finding it hard to pay their bill.
“Unless you’re signing up with a retailer or your retailer knows you’re struggling, then you could be stuck paying more than you need to with that retailer. So, ask your retailer, ‘Do you offer any other plans that would be better for me?’”
Consumer says there are many people who choose to remain loyal to their electricity retailer.
“Many loyal customers assume, wrongly, that their retailer will ensure they’re on the best possible plan. But that’s not how it works.
“We urge people who don’t want to switch, or can’t, to ask their retailer if it has any plans that are better suited to their needs.
“We have created a template to make this process as easy as possible. And we are confident that a few seconds work could lead to savings for many.” (https://consumernz.cmail19.com/t/i-l-fuunut-ijjdkdttjk-y/ )
Notes
Disclaimer: Household figures are approximate estimates based on a nationally representative survey of New Zealanders (n=1,985), conducted from 12 March to 7 April 2025. The results have a margin of error of ±2.2% at the 95% confidence level. Household counts are based on data from Stats NZ’s Dwelling and household estimates, June 2025.
