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How to save money on your hot water bill without risking your health

23 April 2026
Belinda castles 90px

By Belinda Castles

Researcher | Kairangahau

Heating your water accounts for about 30% of your power bill. So, when winter power bills start to climb, it can be tempting to turn down your hot water cylinder or turn it off to save money.

It’s a money-saving hack we’ve seen discussed on social media. But Health NZ Te Whatu Ora warns against it. Heat is the simplest way to stop Legionella bacteria growing and it’s recommended hot water should be stored at a minimum of 60°C.

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Manager of our Powerswitch website Paul Fuge said when power prices rise households can still take action without compromising health.

“Hot water is one of the biggest drivers of a household power bill, so it’s a great place to find savings. In many areas, power retailers offer cheaper rates if you’re on a plan that heats your hot water during off-peak times. This is often called ‘ripple control’. It helps ease pressure on the network, and you’re rewarded with lower prices.”

Fuge said you can also save with time-of-use plans, where power is cheaper overnight and during off-peak periods.

“That’s what works for my busy household with three teenage girls who go through lots of hot water. Our cylinder is set to heat water after 10pm at about half the peak price, so there’s plenty of hot water for the morning shower rush. Most days overnight heating is enough and the savings do add up.”

Fuge advises the key to saving money on your power bill is making sure you’re on the right plan - and the easiest way to do that is by checking Powerswitch.

“With around 12,500 pricing plans tracked on Powerswitch, switching can significantly reduce costs. Last year, the average saving for Powerswitch users was $410 per year.”

Here’s 3 other ways to save money on your hot water without turning the temperature down.

  1. Insulate your cylinder:  cylinders and pipes installed before 2002 generally aren’t well insulated, but adding insulation later needn’t be expensive. You can buy cylinder wraps from hardware stores for about $100 to $150 and pipe insulation from $5 per metre (ask for ‘thermal pipe lagging’). New cylinders tend to be better insulated, so lose less heat, but can still benefit from an insulating wrap.

  2. Test your shower’s water flow:  your shower is wasting water if it fills a 10L bucket in less than a minute. Efficient showerheads with a flow rate of less than 9L per minute can be expensive. But you can buy water-flow restrictors (cheap little discs) that reduce water flow. Failing that, just don’t turn the taps all the way to full.

  3. Wash your clothes in cold water:  a cold wash is all you need for most loads and will cost you a lot less than a warm one.

Powerswitch has more tips on how to save money on your hot water bill.

Legionella bacteria can also be found in potting mix and compost products. It can also thrive in your spa pool or hot tub if you don’t clean it properly. For more information read our investigation into where Legionella bacteria might be lurking around your home.

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