Considering a heat pump?Answers to some common questions about electricity prices.
Why have electricity bills increased so much?
Electricity prices change due to a number of reasons, including the overall competitiveness of the retail market, demand and supply levels, the cost of new generation, natural gas prices, and infrastructure (wires) costs of delivering power to your door.
The following have influenced prices over recent years:
- strong demand for electricity has outstripped electricity generation capacity, much of which was built in the 1960sand 1970s. This growth has required new power stations to be built, and these are more expensive than existing power stations.
- around a quarter of the country’s electricity is generated using natural gas, and the cost of gas has increased sharply as the giant Maui gas field is replaced with smaller fields.
The best ways to keep downward pressure on prices are to seek out and switch to the provider that offers you the best value for money and to use electricity efficiently.
What is the low fixed charge rate and how do I know if I am eligible?
Electricity providers are required to assist low use customers by offering them a low fixed charge tariff option of no more than 30c per day. Your provider should inform you at least annually of whether it may be beneficial for you to switch to a low fixed charge rate.
The low user plan is generally the best option if you use less than 8,000kWh per year, or 9,000 kWh year if you live in parts of the Lower South region (all areas south of and including Christchurch, but excluding the West Coast).
The low user plans have a lower fixed daily charge than the standard options and a higher variable charge for the electricity used. The amount of the variable rate varies depending on where you live and what type of meter you have. To qualify for a low user plan, your home must:
- be used or intended for occupation mainly as a place of residence
- be your principal place of residence.
Certain very small distributor locations are exempt from these requirements.
What are network rebates, and will I still receive them if I switch retailers?
Network rebates typically apply when a local network company is owned by a trust. Rebates occur when dividends are paid to the trust, or a refund of line charges is made. Your new retailer will continue to pass on any network rebates to you, if you are eligible for them, in full, via your bill.
What offers are not included in PowerSwitch?
There are situations where providers make offers to limited groups of customers and these contracts are not available to other consumers. In these situations the providers have tended to keep these offers confidential. We don't display these offers on Powerswitch.
There are also a number of providers not currently listed on Powerswitch.
