Power Company Comparison (Rates Valid from 1 April 2021 onwards)
Compare electricity prices with confidence and find the best provider for your home in minutes. We compare standard and low user rates from Genesis Energy, Contact Energy, Mercury Energy, TrustPower, Meridian Energy, Electric Kiwi, Flick Electric and more
Updated 15 March 2021
Our guide is the first of its kind to compare power companies and outline a three-step process to get the best deal. Electricity prices are usually not comparable unless you spend hours asking every provider for their latest prices. You'll then need to add or subtract GST, include or exclude levies and cross-check your numbers. It's difficult, convoluted and unfair, so we've done the work for you.
Our guide gives you the confidence to switch to the best provider by making an informed decision. Best of all, you will know exactly what you're paying because you pre-confirm this BEFORE signing up.
There are so many electricity tools - why have we published this guide?
Our guide allows you to contact an electricity company as an informed consumer. Specifically:
Our guide covers:
Our guide gives you the confidence to switch to the best provider by making an informed decision. Best of all, you will know exactly what you're paying because you pre-confirm this BEFORE signing up.
There are so many electricity tools - why have we published this guide?
- We have published this guide in response to our concern with comparison tools which, for better or worse, tend to produce different results depending on what website you used.
- In some cases, only four different providers are 'compared' when, in fact, there are more than ten offering their services.
- Our guide has been developed to do better and put you first with the most complete information.
Our guide allows you to contact an electricity company as an informed consumer. Specifically:
- We want you to understand how pricing works - "daily rates" and "kWh unit charges" vary between cities and regions, but we compare providers in major cities all over New Zealand.
- You'll know the prices for your area (or how to get them), so you can switch or join with confidence that you'll be saving money every month. We estimate that the average home can save between $150 and $600+ a year on power (depending on the number of people living at the property and how much electricity is used).
- We believe the best way to save money is to switch to the best-value provider, and continue to compare annually to make sure you're not overpaying.
Our guide covers:
Our view:
- There is a lot of confusion and misunderstanding about electricity prices in New Zealand. A number of comparison websites exist, but even with the same address and usage details, you can end up getting different results. Power companies don’t make understanding their prices easy either, and it's hard to look at dollars and cents and compare without understanding typical usages.
- We believe hundreds of thousands of New Zealand households are paying a ‘loyalty penalty’ by staying with their existing power company. As the media has reported, there is a two-tier pricing system operating in New Zealand – those who compare, switch and save, and those who stay loyal and overpay. We believe that's unfair, and a lack of government regulation or oversight means price rises can outpace inflation.
- We have received complaints from everyday New Zealanders who have overpaid, found a better offer and notified their long-standing retailer they will switch, only to be offered huge ongoing discounts to keep them as a customer. We don't think that's fair either, but this may be an option once you've compared the market.
- Government data suggests electricity prices barely increase year on year, but despite this, there is a spread of prices between providers. And it goes without saying that electricity is an indistinguishable service, meaning a trusted provider with the lowest rates should, all other things being equal, offer the best deal.
- New Zealand is unique in that it relies heavily on natural energy for power; hydroelectric plants generate around 60% of our power. Combine the need for healthy lake levels with year-round extreme weather patterns (droughts, snow, floods) and the long-term issue of poorly insulated housing. When we need power, we need it all at the same time.
- This causes the electricity price that power companies pay to the generators to jump up and down on any given week by week, depending on the weather conditions. The end result is that many people overpay for electricity when lower prices can easily be found.
Save Money and Be Fully Informed
- Our view is simple – compare your pricing and don’t be loyal or lazy unless you've verified that you're on the best deal.
- To help understand exactly how power companies charge, which ones are the cheapest and how you can save move by switching, we have published this guide to cover everything you need to know.
Understanding How Electricity is Priced and Your Power Bill
To make sense of your power bill, it's essential to know the facts:
How Energy Companies Charge You:
A power bill is made up of more than just power:
To start saving on your power bill, the first step is understanding the elements that make up the cost of electricity in New Zealand. Turning down the heater won't directly lower the price as there are a lot of other charges beyond usage. Below is a simplified version of how the money you pay is distributed on the electricity bill:
Know this:
- Your power bill is made up of two elements; a fixed daily charge and a variable charge. Only the "variable" portion takes into account the total amount of energy (kWh) that your household consumes in a month.
- The variable charge rate varies significantly depending on the type of plan you have (low user or standard user). Low users pay a much higher variable rate, whereas standard users pay a lower variable rate.
- The fixed daily charge also varies from low users to standard users. By law, low users pay around 30 cents + GST per day. Standard users pay more (and how much that is depends on where they live in New Zealand).
How Energy Companies Charge You:
- Daily Charge: Many retailers charge a daily fee to be a customer for being connected to the service. This is usually somewhere between 30 cents and around $2.00.
- Unit Charge (kWh): This is the cost per kWh used, and is usually anywhere from $0.15 to $0.25. For example, a 1,000-watt fan heater needs 1,000 watts (1 kW) of power to make it work, and uses 1 kWh of energy in an hour. If you turned on this heater for an hour, you would be charged the kWh fee. And even if you are not using an appliance, you can still be charged. For example, if you leave a TV or computer on standby, it is still using power and creating a kWh cost on your energy bill.
- Electricity Authority (EA) Levy: The EA charges a small fee per kWh consumed to fund its role in regulating the electricity market.
- GST - GST is added to the total costs of 1-3 above.
A power bill is made up of more than just power:
To start saving on your power bill, the first step is understanding the elements that make up the cost of electricity in New Zealand. Turning down the heater won't directly lower the price as there are a lot of other charges beyond usage. Below is a simplified version of how the money you pay is distributed on the electricity bill:
- 32% - Is for generating the electricity you use (mostly, renewable sources)
- 27% - Is used for distributing the electricity (commercial and residential power lines repair, and maintenance)
- 13% - Goes for the retail company (the operator that sends you the bill)
- 15% - GST (Goods and Services Tax)
- 10.5% - Is used for expanding and maintaining the national power grid; this is also known as transmission costs
- 3.5% - Has to do with the cost of reading and maintaining electricity meters nationwide
- 0.5% - Goes toward regulation of the electricity industry (i.e. costs of running the Electricity Authority)
- 0.5% - Goes toward the operating costs of the organizations that manage the day-to-day running of the electricity market
Know this:
- Only 13% of your power bill goes to the retailer. This means that while you can save some money by switching operators, the potential savings are not as noticeable as you might think.
- About 17% of your money goes towards the GST and the cost of maintaining electricity meters. There is literally nothing you can do to cut this cost.
- Approximately 70% of the electricity bill goes towards paying for the generation, transmission, and subsequent distribution of the energy you use. Simply put, the best way to achieve significant savings is by focusing on lowering your energy consumption in kilowatts per hour.
- Regardless of your electricity supplier (retailer), the invoice must explicitly reflect the fixed and variable costs applied. Retailers can use different names to refer to the same term. If you have doubts, contact your provider to clarify the type of charge that is being made. With the knowledge gained in this guide, you will have no trouble understanding the operator's explanation.
- Total energy consumption in the month (units) is by far the highest of all charges. In other words, you should carefully monitor your kWh usage throughout the year in order to understand how to lower your electricity bill.
- Price Rises are NOT Always Due to Retailer Increases - it’s important to know that every year on or around April 1, lines companies all over New Zealand review their prices. This means that even if your electricity retailer doesn’t increase its own prices, a rise in the lines company fees will mean your power prices may rise.
Our Power Company Comparison (and how to get the best deal)
The cheapest energy plan for you depends on where you live and your usage. Our research below provides a sample for two typical households (four people - standard use, and two people - low use) for New Zealand’s major cities. Electricity Price Comparison
Our examples:Cheapest Power Company in AucklandCheapest Power Company in HamiltonCheapest Power Company in Palmerston NorthCheapest Power Company in WellingtonCheapest Power Company in ChristchurchCheapest Power Company in Dunedin
Our examples:Cheapest Power Company in AucklandCheapest Power Company in HamiltonCheapest Power Company in Palmerston NorthCheapest Power Company in WellingtonCheapest Power Company in ChristchurchCheapest Power Company in Dunedin
- Prices correct as of 1 April 20121. Based on calculations for an example annual usage for .......
- All plans assume monthly direct debit payment. We have not applied sign-up bonuses or early repayment discounts.
Next Steps - Our EASY Three-Step Process to Get the Best Electricity Deal
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Shortlist three providers from our comparison data aboveWe have comprehensively compared many cities and a range of different energy consumptions. From the list above, you can shortlist three providers who stand out for pricing and benefits. Our shortlist per city helps you select with confidence.
For example, if you're a four-person house in Auckland using 9,000 kWh a year, we believe the best options are XXXXX, XXXXX and XXXXX. Once you have shortlisted done this, please download our comparison spreadsheet. This will pinpoint the cheapest provider for your annual usage. For the best results, compare the three options against your current provider - you can get the prices from your last bill and input them in on the far right section of our comparison spreadsheet. |
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Source the latest electricity prices (daily charge and kWh rates)Next, you'll need to open the spreadsheet and source six numbers to power the comparison. The good news is you can get those numbers in about two to three minutes in total.
What you'll need to do:
Locate local power prices in seconds - each of the links below takes you to the get-a-quote phase:
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Confirm the best electricity provider and switchOnce you're comfortable with the pricing, the best approach is to get the electricity company to send you a quote that confirms the pricing and how long the terms are valid for. It will look something like this example from Meridian.
Once received, you check over it and if you're happy, sign up for the deal offered. It's a good idea to be aware of the terms of any sign-up bonus, perks, direct debit or early repayment discounts as this can reduce your overall costs further. |
Electricity Bills - Frequently Asked Questions
Electricity pricing should be simple, but inconsistencies between providers mean that it is complex. We list popular questions below and answer them to help you make a better decision on whether to switch or stay with your current provider.
Am I a standard user or a low user for power?
Your power bill is a good starting point since it has to specify which plan is currently being applied to your household.
What power plan is the best option for my home?
- If you live on the North Island and your annual electricity consumption is less than 7,000 kWh (or 8,000 kWh for those living in the lower parts of the South Island), your best option is to opt for a low-user plan.
- However, if your annual consumption is higher than 9,000 kWh (North Island) or 10,000 kWh (lower parts of the South Island), then the standard plan is more cost-effective.
- If your annual consumption sits between 7,000 kWh and 9,000 kWh (North Island) or between 8,000 kWh and 10,000 kWh (lower parts of the South Island), then you should take into account additional considerations, including the rates offered by the retailers in your area.
Can I opt for a low user plan?
According to the low-user legislation, if your household consumes less than 8,000 kWh per year (North Island) or 9,000 kWh per year (lower parts of the South Island), you can be considered a low user. Simply put, you need to know your household consumption over a year to know for sure what category applies to your case.
Can I switch plans?
Yes, you can. Assuming you comply with the consumption thresholds established by the current legislation, you can switch from a standard user plan to a low user plan, or vice-versa.
What is the average electricity cost per kWh in New Zealand?
According to the NZ Ministry of Business, Innovation & Employment, the average electricity costs per kWh for a low user in New Zealand can vary from 26.75 cents (Dunedin) to 41.68 cents (Kerikeri), with the average cost per kWh in Auckland 29.67 cents (with Wellington and Christchurch around the same).
What information do I need to compare energy costs?
You'll need to know your approximate kilowatt-hour use per year, and the cost per kWh in your local area. To make a complete comparison, you'll need to know the daily charge as well, which will vary between electricity companies, and any discounts offered for early payments, e-statements etc. Making the comparison without a template to follow is difficult - we believe our downloadable tool and comparison data to be the most comprehensive in New Zealand.
How many kilowatt-hours should I be using each year?
According to the Electricity Authority (EA), an average home in New Zealand should consume 8,000 kWh per year (North Island) or 9,000 kWh per year (lower parts of South Island). Obviously, these are average values that can vary significantly according to your lifestyle.
What is the average power bill in New Zealand?
The average NZ household, comprised of a couple with two kids under the age of 18, pay between $2,200 to $2,350 a year in electricity. Take into account though that your power bill might vary depending on several factors, including the number of occupants of the household, the type of appliances used, and more.
How can a smart meter benefit my energy bill?
Smart meters can help lower your electricity bill by sending accurate information about your energy consumption and thus prevent using an "estimate" based on the consumption of previous months. This usually happens when the retailer is not able to take the actual reading on traditional electricity meters.
What’s the difference between kWh and kW?
Kilowatts give you an idea of the energy consumed by an appliance, whereas kilowatts-hour indicates the total amount of energy used by such an appliance during a determined period of time. For instance, a 10W (0.01kW) led bulb consumes less energy than a 50W (0.05kW) incandescent light bulb. However, if you leave the led bulb on for 10 hours, it will consume the same energy as the incandescent bulb in 2 hours (0.1kWh). Simply put, in addition to energy efficiency, the way you use the appliance also matters a lot.
What is the difference between transmission and distribution?
Although they seem to have to do with the same thing (moving electrical energy from one place to another), there are notable differences between these concepts. Transmission lines require huge poles and thick cables to carry enormous amounts of power throughout New Zealand. You can think of them as the highways that go from one city to another. The distribution lines, on the other hand, use smaller poles, transformers, and cables of smaller diameter to carry the necessary amount of energy to the communities and houses.
Why does the cost of transmission and distribution vary from place to place in New Zealand?
The explanation is very simple. The most remote areas of New Zealand require transmission lines just like the rest of the country. However, given the difficult topography, the cost of maintaining these lines is usually higher. The same principle applies to the distribution lines within certain areas.
Related Reviews and Guides:
- Genesis Energy
- Contact Energy
- Mercury Energy
- TrustPower
- Meridian Energy
- Nova Energy
- Pulse Energy Alliance
- Electric Kiwi
- Orcon Power
- Flick Electric
- Compare Electricity Providers in Auckland, Hamilton, Wellington, Christchurch and Dunedin
