This reliable guide will help you compare power prices with confidence and help you find the best power provider for your home. Within this guide, you will find comparisons of power rates in New Zealand from companies such as Genesis Energy, Contact Energy, Mercury Energy, TrustPower, Meridian Energy, Electric Kiwi, Flick Electric and other providers. Our broad review of companies ensures that you’re getting full coverage of all major cities in New Zealand.
It’s not a surprise that it can be difficult to compare power companies given that there are so many options. With many different types of plans available, some being fixed and some variable, it’s hard to understand which plan and company are the best fit to your requirements and offer the best value. That said, the most satisfied customers are the ones who spend a few extra minutes making sure they get the better deal in the long-term - especially with regards to electricity price rises.
The purpose of this guide is to bring clarity to your choice of power provider, to give you the confidence to make a well-informed decision and to give you the tools to be able to compare the best of all NZ power companies. Best of all, this guide will let you know exactly what you’re paying because you will be able to pre-confirm your power company rates with us here before you commit to anything. While most of the plans are variable, we have made sure to highlight fixed-term plans for you as well.
Simple.
We are concerned with the lack of transparency of the current comparison tools available on the market, limiting the ability of the average New Zealander to find the best power company for their living situation. Most tools that let you compare power companies produce different results and can make it harder to compare power rates, getting in the way of making the best choice possible for your whānau. In many cases, only a few power providers are compared, when there are a multitude of them available.
In developing this guide, we have you – the consumer – in mind. We want to make sure that you have the most complete information out there. In saying that, your first step should always be to compare power prices of your existing provider with leading power companies in NZ to get a good understanding on where you are currently placed.
After reading our guide you should be able to contact any power provider as an informed and confident consumer. In particular:
You will be able to compare power prices and understand how power pricing works across all power providers and across all major cities all over New Zealand. This will put you into the best position possible when choosing power plans.
You will become knowledgeable in energy prices in your area and will be able to switch or join a new power provider with full confidence that you are getting the best power deals. An average home has the potential to save between $100 and in excess of $1,000 a year on power, if making calculated and smart power provider decisions.
The best way to maximise value and save money is to continuously compare power prices, switching to the best provider at the time and continue re-assessing your power provider and their power plans annually (or whenever your contract is at an end). Keeping up to date with power providers and their pricing will ensure you are not overpaying!
In our guide you will find information on:
How electricity is priced
Power company price comparisons
Reading and understanding your power bill
Electricity bill FAQs
New Zealand is relatively uniquely placed, in that the majority of our power (specifically around 60% of power) comes from hydroelectric power schemes, which has a direct impact on power prices in New Zealand. Together with New Zealand’s long-term issue of poorly insulated homes and the need for healthy and sustainable usage of our lakes, the demand for power is consistently high. On the other hand, the real cost of generation of electricity for hydroelectric power is very low.
To make sure that the high demand and cheap cost of generation doesn’t translate into high rates of return, the electricity generators have revalued their hydro stations to a point where they can now claim that their return on asset value is only average (or in some cases very low).
Ultimately, this means that many people end up overpaying for electricity when the reality is that the power has cost them so much less.
The first (and most important) step to finding the best power prices in NZ is to set aside loyalty to your current electricity provider and start comparing your pricing. Only through comparing can you become fully informed about whether or not you have the best rates in New Zealand available to you. Below, we look at Auckland, Wellington, Christchurch and Dunedin to help you understand your current pricing and offers. This guide is applicable to both residential customers and business customers.
Before you dive into your power bill, it’s important that you understand the basics:
Every power bill is made of up of two components – a fixed daily charge and a variable charge. A variable charge is the cost of the amount of electricity you consume in a month, whereas the daily fixed charge covers the fixed cost of supplying energy to your property.
The variable charge rate will vary significantly depending on your power plan. Specifically, whether it’s a low user or a standard user plan. A low user is any electricity customer who uses a relatively small amount of power. Low user electricity plans have a lower daily charge and a higher variable usage charge.
In the North Island, you are considered a low user if you use less than 8,000 kWh annually at your primary residence (666 kWh a month), while in the lower parts of the South Island you are a low user if you less than 9,000 kWh per year (750 kWh a month).
A standard user plan has a higher daily charge and a lower variable usage charge, making it the most cost-effective option for most people.
You are a standard user if you use more than 8,000 kWh per year at your primary residence in the North Island or more than 9,000 kWh annually in the southern regions of the South Island.
Despite the name, a fixed daily charge varies from low to standard users. In particular, low users pay around 60 cents + GST per day (this charge used to be 30 cents per day prior to April 2022). Standard users pay more depending on where they live in New Zealand.
Unit Charge (kWh): A kilowatt hour (kWh) is a measure of how much energy you’re using and is usually anywhere from $0.15 to $0.25.
For example, a 2,000 watt dishwasher would use 1 kWh in just half an hour. If you turned on the dishwasher for an hour, you would be charged the kWh fee. In saying that, even if you are not using the dishwasher (or any other appliance) but you leave it on standby, you can still be charged as the appliance will continue creating a kWh electricity cost on your energy bill.
Daily Charge: This is a daily fee charged back to the customer for being connected to the provider. This is usually somewhere between 60 cents and around $2.00.
Electricity Authority (EA) Levy: The EA charges a small fee per kWh consumed to fund its role in administering industry obligations and voluntary guidelines that the retailers must follow. These include standards for the contracts retailers have with their customers.
The levy is directly charged to industry participants. They may pass this cost on to consumers - this means a power bill could show the levy, or it could be included in other costs.
GST: GST is added to the total costs of 1-3 above.
The next step in understanding power bills (and saving money on power) is to understand what elements make up the cost of power and how that relates to electricity prices in New Zealand.
Below is a simplified version of how the money you pay is distributed on the electricity bill:
32% - Is the cost of generating the electricity you use
27% - Is the cost of distribution required to build and maintain the power lines that transport electricity from where it is generated to your house
13% - Is the cost your retail company charges you for providing the service
15% - GST (Goods and Services Tax)
10.5% - Is the cost of transmission, used for expanding and maintaining the national power grid
3.5% - Is the cost of reading and maintaining your electricity usage meter, smart or analogue
0.5% - Is the cost of regulation of the electricity industry by the Electricity Authority
0.5% - Is the operating cost of day-to-day running of the electricity market
Of note:
Lowering your energy consumption in kilowatts per hour will help you save on power. However, switching providers continues to be the best way to get the most value for money and bring about the most benefit to you.
While retailers can use different names for the same terms, it’s important to know that your electricity invoice is regulated and must show fixed and variable costs applied. If ever in doubt, call your power provider to confirm, this will ensure you are well equipped to compare power prices as required.
You should be mindful of your electricity cost per kWh throughout the year as the total energy consumption (units) continues to be the highest charge you will see on your bill.
Every year, around 1 April, electricity companies nationwide compare power prices and review their current set prices. The result is typically an increase in prices for consumers, even if the electricity retailer itself doesn’t increase its own prices.
More than 80% of New Zealand homes now have smart meters installed. While analogue electricity meters are being phased out, it’s still helpful to know the difference and understand not only the benefits of having a smart electricity meter but also what the electricity meter measures.
Analogue electricity meters are useful for monitoring electricity use on a periodic basis and for checking the accuracy of electric bills from month to month. Analogue electricity meters have multiple spinning dials, which are best read by qualified electricity company representatives.
Analogue electricity usage meters have one purpose – to tell the consumer or meter reader how much electricity has been used since the last reading.
Digital or “smart electricity meters” record daily electricity use and share information about consumption between users and electricity suppliers over wireless digital radio frequency networks.
Such an interactive capability also allows power companies to manage energy use and adjust loads during periods when there is a danger of a potential system overload, such as during periods of extremely hot or cold weather.
There are many different specific types of meters on the market available to New Zealanders for use. The type of meter you currently have installed on your property will dictate what kind of variable charge your power providers will apply to your bill. Understanding these different types of meters will help you find the best power deal in New Zealand.
In summary, the main point of difference is whether the meter is:
Most homes in New Zealand have two meters installed, each serving a particular purpose - one controlled (for example to heat the hot water) and one uncontrolled (for example for house lighting).
The most common meters are discussed below.
A controlled meter (often paired with an uncontrolled meter) is a meter set up for a dedicated energy supply to a specific appliance (commonly your water heating) for anywhere between 8-20 hours per day.
This meter is "controlled" by the electricity company during peak hours to ease demand on the local grid.
Controlled meters are much cheaper than meters that provide a continuous supply of electricity.
What this means is that electricity supply to a specific appliance can be turned off during peak hours for an allocated period determined by the electricity company.
The energy is charged at a lower rate than on an uncontrolled meter.
An uncontrolled meter provides constant and unrestricted supply of energy to your appliances at the same price 24 hours a day.
By implication, the rate is higher than that of a controlled meter (as it is a constant supply) and cannot be “controlled” by the electricity company.
The uncontrolled meter (commonly paired together with the controlled meter) is used to supply primary house connections.
The inclusive meter is a single meter that effectively combines controlled and uncontrolled meters and charges a flat rate for consumption. As a result, the rate from an inclusive meter tends to be lower.
Mimicking a controlled meter scenario, inclusive meters implement a device called "ripple relay" to control hot water heating, avoiding unnecessary heating and proving a cheaper unit rate.
This electricity meter measures electricity used during the day separately from electricity used at night.
While it provides a 24-hour unrestricted supply of electricity to the property, it applies two different rates depending on whether energy is supplied during the day period of 7am - 11pm or the night period of 11pm - 7am.
Electricity companies may choose to offer additional rates. Some example are as follows:
Night only – Electricity is supplied at a discounted rate and available only at certain hours of the night. This is particularly relevant for use on specific appliances such as water cylinders.
Peak/Off-peak - Energy is charged at a lower rate during off-peak hours and throughout the weekend. By comparison, higher prices are charged at peak times.
Winter/summer – Energy is charged at a higher rate during winter months (May to September) in comparison to summer months (October to April).
At its basic, power prices in NZ and consequently, the cheapest power company and plan for you depends on where you live and how much electricity you use.
Using a specific annual kWh per city for standard users, we have obtained online quotes for [20+ plans from 13 power companies] that are valid as at the time of this article.
We ranked the results from lowest to highest in price, taking into account any current discounts and signing bonuses.
[Prices are correct as of 31 May 2022. Our research team updates this guide quarterly; the next re-review will be in late July 2022.]
We have applied the following discounts in our electricity provider rates comparison in New Zealand:
Standard Users
Energy Provider (Standard User plan) |
Annual charge estimate | Contract - Fixed Term or Open? |
Electric Kiwi - MoveMaster (Standard) | $2,197 | Open |
Mercury 2 year fixed (Standard) | $2,202 | Fixed (2 years) |
Contact Everyday Bonus Fixed (Standard) | $2,373 | Fixed |
Powershop (Standard) | $2,387 | Open |
Mercury 1 year fixed (Standard) | $2,400 | Fixed |
Frank Energy (Standard) | $2,417 | Open |
Contact Basic Plan (Standard) | $2,575 | Open |
Genesis Energy Basic (Standard) | $2,599 | Open |
Flick Energy Flat (Standard) | $2,700 | Open |
Flick Energy Off Peak (Standard) | $2,700 | Open |
Trustpower (Standard) | $2,716 | Open |
Globug (Standard) | $2,720 | Open |
Electric Kiwi - Stay Ahead 200 (Standard) | $2,726 | Open |
Nova Energy (Standard) | $2,771 | Open |
Electric Kiwi - Loyal Kiwi (Standard) | $2,814 | Fixed (12 months) |
Meridian (Standard) | $2,824 | Open |
Genesis Energy Plus (Standard) | $2,849 | Open or Fixed |
Pulse Energy (Standard) | $2,901 | Fixed |
Electric Kiwi - Kiwi (Standard) | $2,936 | Open |
Ecotricity Eco Anytime (Standard) | $2,967 | Fixed |
Ecotricity Eco Saver (Standard) | $2,975 | Fixed |
Mercury Everyday Rates (Standard) | $3,061 | Open |
Standard Users
Energy Provider (Standard User plan) |
Annual charge estimate | Contract - Fixed Term or Open? |
Mercury 1 year fixed (Standard) | $2,062 | Fixed |
Mercury 2 year fixed (Standard) | $2,190 | Fixed (2 years) |
Powershop (Standard) | $2,290 | Open |
Contact Everyday Bonus Fixed (Standard) | $2,300 | Fixed |
Electric Kiwi - MoveMaster (Standard) | $2,361 | Open |
Frank Energy (Standard) | $2,405 | Open |
Genesis Energy Basic (Standard) | $2,416 | Open |
Contact Basic Plan (Standard) | $2,500 | Open |
Flick Energy Flat (Standard) | $2,572 | Open |
Flick Energy Off Peak (Standard) | $2,572 | Open |
Meridian (Standard) | $2,580 | Open |
Genesis Energy Plus (Standard) | $2,582 | Open or Fixed |
Trustpower (Standard) | $2,631 | Open |
Globug (Standard) | $2,644 | Open |
Pulse Energy (Standard) | $2,694 | Fixed |
Ecotricity Eco Saver (Standard) | $2,694 | Fixed |
Ecotricity Anytime (Standard) | $2,708 | Fixed |
Nova Energy (Standard) | $2,870 | Open |
Mercury Everyday Rates (Standard) | $2,953 | Open |
Electric Kiwi - Stay Ahead 200 (Standard) | $2,964 | Open |
Electric Kiwi - Loyal Kiwi (Standard) | $3,097 | Fixed |
Electric Kiwi - Kiwi (Standard) | $3,203 | Open |
Standard Users
Energy Provider (Standard User plan) |
Annual charge estimate | Contract - Fixed Term or Open? |
Mercury 2 year fixed (Standard) | $2,640 | Fixed (2 years) |
Powershop (Standard) | $2,649 | Open |
Frank Energy (Standard) | $2,659 | Open |
Contact Everyday Bonus Fixed (Standard) | $2,659 | Fixed |
Electric Kiwi - MoveMaster (Standard) | $2,665 | Open |
Mercury 1 year fixed (Standard) | $2,776 | Fixed |
Flick Energy Flat (Standard) | $2,838 | Open |
Contact Basic Plan (Standard) | $2,867 | Open |
Trustpower (Standard) | $2,922 | Open |
Flick Energy Off Peak (Standard) | $2,929 | Open |
Pulse Energy (Standard) | $2,940 | Fixed |
Globug (Standard) | $2,941 | Open |
Nova Energy (Standard) | $2,958 | Open |
Genesis Energy Basic (Standard) | $3,007 | Open |
Ecotricity Eco Saver (Standard) | $3,019 | Fixed |
Ecotricity Eco Anytime (Standard) | $3,036 | Fixed |
Meridian (Standard) | $3,039 | Open |
Genesis Energy Plus (Standard) | $3,197 | Open or Fixed |
Electric Kiwi - Stay Ahead 200 (Standard) | $3,266 | Open |
Mercury Everyday Rates (Standard) | $3,305 | Open |
Electric Kiwi - Loyal Kiwi (Standard) | $3,406 | Fixed (12 months) |
Electric Kiwi - Kiwi (Standard) | $3,520 | Open |
Standard Users
Energy Provider (Standard User plan) |
Annual charge estimate | Contract - Fixed Term or Open? |
Contact Everyday Bonus Fixed (Standard) | $2,331 | Fixed |
Frank Energy (Standard) | $2,451 | Open |
Powershop (Standard) | $2,462 | Open |
Contact Basic Plan (Standard) | $2,532 | Open |
Mercury 2 year fixed (Standard) | $2,552 | Fixed (2 years) |
Electric Kiwi - MoveMaster (Standard) | $2,575 | Open |
Genesis Energy Basic (Standard) | $2,650 | Open |
Mercury 1 year fixed (Standard) | $2,677 | Fixed |
Globug (Standard) | $2,771 | Open |
Genesis Energy Plus (Standard) | $2,860 | Open or Fixed |
Flick Energy Flat (Standard) | $2,870 | Open |
Flick Energy Flat (Standard) | $2,870 | Open |
Flick Energy Off Peak (Standard) | $2,870 | Open |
Nova Energy (Standard) | $2,932 | Open |
Meridian (Standard) | $2,969 | Open |
Electric Kiwi - Stay Ahead 200 (Standard) | $2,979 | Open |
Trustpower (Standard) | $3,063 | Open |
Mercury Everyday Rates (Standard) | $3,127 | Open |
Electric Kiwi - Loyal Kiwi (Standard) | $3,167 | Fixed (12 months) |
Ecotricity Eco Saver (Standard) | $3,188 | Fixed |
Ecotricity Eco Anytime (Standard) | $3,223 | Fixed |
Electric Kiwi - Kiwi (Standard) | $3,274 | Open |
Disclaimer:
While we try our best to supply you with the most recent and accurate information, and to give you the tools to access the best power prices in New Zealand, we cannot guarantee that our power comparison tool will reduce power bills. Electricity providers in NZ can change their variable plan rates (with 30 days’ notice). The rates are always subject to change.
Inconsistencies between power providers can make energy costs complex and finding the best deal in New Zealand difficult. To combat the complexities we list frequently asked questions below, with the aim to help you make a better, more informed decision on whether to switch or stay with your current provider.
Your power bill is a good starting point as it has to specify which plan is currently being applied to your household.
Otherwise, as a general rule, if you use less than 8,000 units a year (about 660kWh/month) then a low user plan is best for you. This means that you will generally be paying a lower daily charge and a higher variable charge for each unit of electricity.
A standard user plan will mean a higher daily charge but a lower per kWh (unit) charge. People using more than 8,000 kWh per annum are better off on a standard user plan. This means that the more electricity you’re using, the more likely it is that you’ll be better off on a standard user plan.
Of course! If you are compliant with the consumption thresholds established by the current legislation, you can switch from a standard user plan to a low user plan, or the other way around. There is very little standing in the way of you finding the best power prices in New Zealand for you and your family.
In 2021, the average cost of electricity per kWh for residential use was around 29.36 New Zealand cents per kilowatt hour. The specific rates vary from 26 cents (Dunedin) to 33 cents (Rotorua) to 42 cents (Kerikeri).
To make a full comparison of NZ power company prices and in order to find the best power prices in New Zealand you will need to know your approximate kilowatt-hour use per year, and the cost per kWh in your local area. You will also need to know the daily charge, which will vary between power companies, together with any discounts offered (such as discounts for early payments).
The specific figure will vary from household to household and will depend heavily on your energy efficiency and lifestyle. However, 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).
The average New Zealand household will pay between $2,000 to $3,000 a year in electricity. The average power price in New Zealand will, of course, vary depending on various factors such as the number of household members, the type of appliances used, the household's energy efficiency, and of course the electricity supplier, among other factors.
Amongst many benefits, an electricity smart meter will give you the ability to access online tools to easily monitor and manage your power bills and usage in one place. A smart electricity meter will also give you the ability to get more accurate bills as your power company will be getting up-to-date data from your meter, reducing the need to estimate your power usage.
By providing more accurate information, smart meters can help lower your electricity bill by making sure accurate information about your energy consumption is sent through to the power provider, preventing your power company from using an "estimate" method being applied.
While there are a number different types of smart electricity meters on the market, and the actual procedure might differ from one another, in general the following steps should be followed to turn electricity back on with a smart meter:
Note that your electricity smart meter screen should update every eight seconds. To stop the screen changing, press the ‘select’ button.
If you cannot find similar options or are having trouble with your electricity smart meter, contact your power company for further instructions.
The main difference between kWh and kW is in what they measure. Simply put, a kilowatt is a measure of power and a kilowatt-hour is a measure of energy; power is the rate at which something uses energy, and energy is the capacity to do work.
A kilowatt is simply a measure of how much power an electric appliance consumes.
A kilowatt-hour measures the energy an appliance uses in kilowatts per hour. For example, if you clean your floors with a 1,000-watt vacuum cleaner for one hour, you consume 1 kWh of energy.
When you see kWh on your monthly energy bill, it’s a measurement of your electric appliances’ wattage and the amount of time you use them.
Simply put, transmission lines help in the movement of electricity from a power plant or power station to the various substations whereas distribution lines carry electricity from the substation to the consumer’s end.
In practice, transmission lines require huge poles and thick cables to carry the power throughout New Zealand. Distribution lines, on the other hand, use smaller poles, transformers, and cables of smaller diameter to carry the necessary amount of energy to households.
Even the most remote areas of New Zealand require transmission lines to run electricity. However, given the remoteness and difficult topography, the cost of maintaining these lines tends to be higher. The same principle applies to the distribution lines.
ICP is your Installation Control Point (ICP), this will be listed on your bill, usually near your account number, or your physical address.
Yes, but this change might come at a cost. For example, if you are on an uncontrolled meter type but would like to sign up to a day/night plan, you would need to change your meter installation. If this is the case, it's highly likely you'll need to pay the cost of installation while the power company covers the cost of the metre per CAB guidance.