Source: Electricity Authority
The Electricity Authority Te Mana Hiko says proposed changes to simplify electricity bills will make it easier for consumers to find the right plan for them and pay less for power.
The Authority is asking for feedback on changes to give people more choice, more control and better value on their electricity.
“Everyone should have access to affordable electricity,” says Electricity Authority Chief Executive Sarah Gillies. “We want every New Zealander to know if they’re on the best plan for them, and be able to easily compare their plan and switch power companies.”
The changes proposed in Improving electricity billing in New Zealand would provide people with the information they need to easily compare and switch plans, and lay the foundations for future smart services. The proposed changes would make bills consistent, easy to read and more useful to consumers.
Importantly, power companies would also be required to check in with their customers every six months and advise if there’s a better plan for them based on their use. Customers trialling time-of-use plans would be better protected as the changes would introduce a review after three months with the option to return to their old plan – or switch to a better one – if they’re not saving money. Any penalty for changing plans with the same provider would be removed.
Back bills, or catch-up bills, which can cause ‘bill shock’, would also be limited by capping how far back retailers can charge. This protection would also be extended to small businesses.
“A large, unexpected bill can be a real shock on budgets and stress levels, especially for those already under financial pressure. As well as consumers facing energy hardship, we’re acutely aware that many small businesses are also doing it tough. We want to protect consumers and small businesses from those sudden and unmanageable costs,” Gillies said.
A lack of standardised data has been a barrier to helping consumers access the best plan for them. Following consultation, the Authority has decided to replace voluntary Electricity Information Exchange Protocol 14 (EIEP14) with a regulated, modular suite of new protocols. The Authority also proposes a new system that assigns a unique code to every retail electricity plan, so they can be easily compared.
“Bills should not be confusing, and you shouldn’t have to be an energy expert to get the best deal. Whether you’re hands-on or hands-off, you’ll benefit from a more transparent and consumer-focused electricity system,” Gillies said.
Summary of key improvements proposed
- Make bills easier to understand through standardised content, plain-language and a logical lay-out
- Give residential consumers the information they need to compare plans across the entire electricity market
- Enable consumer mobility with better plan prompts, risk-free time-of-use adoption, and prohibiting switching penalties when staying with the same retailer
- Protecting residential and small business consumers by limiting back bills and avoiding bill shocks from estimated meter readings.
How this relates to the Authority’s other work
The billing proposal is a cornerstone of the Electricity Authority’s consumer mobility workstream, focused on delivering more choice, more control and better value for consumers.
The proposed changes would provide information essential to compare, switch and lay the foundations for future services − such as AI-driven tools, smart home systems that optimise energy use in real time and new digital platforms that will help consumers save money and time.
Supporting consumers to have their say
We’ve designed a consumer survey and a simple, clear version of the information to support consumers to understand the proposed changes and have their say. People can also email their feedback to consumer.mobility@ea.govt.nz or post it to Electricity Authority, PO Box 10041, Wellington 6143.
The Electricity Authority is an independent Crown Entity with the main statutory objective to promote competition in, reliable supply by, and the efficient operation of, the electricity industry for the long-term benefit of consumers. The additional objective of the Authority is to protect the interests of domestic consumers and small business consumers in relation to the supply of electricity to those consumers.
