In the majority of Kiwi households across the country, one of the biggest monthly utility expenses is power. As we get further into the cold winter months, many people are starting to notice an increase on their power bills. As a result, more and more Kiwis are taking a deeper look into their electricity charges, to see exactly where their money is going.
To help you better understand your power bills and what you’re getting charged for, we’re going back to basics by answering the question: “How much does electricity cost?”
Let’s break down the average electricity bill and see what New Zealand’s power companies are actually charging you for…
Most power plans in New Zealand charge you a “daily usage fee”. This daily usage fee is a fixed price that you pay each day, and includes things like meter rental, government levies and payments to network companies.
The exact daily charge depends on what kind of user you are. Low power users - who use less than 8,000kWh per year - are charged a lower usage charge (around 30 cents a day), but a higher amount per unit of electricity. Standard power users, on the other hand, pay a higher usage charge (normally between $1.50 - $2.50 a day), but a lower amount for each unit of electricity used.
On top of your daily usage fee, you’ll pay a certain price for each unit of electricity you use. The price you pay for this will largely depend on who your power provider is, and also where you’re located in the country.
For example, the average price per kilowatt hour on a standard user plan for an Auckland resident is 28 cents, whereas the same type of user in Kerikeri will pay 41 cents on average.
Similarly to daily user charges, a low user will pay higher for units of electricity, but a lower daily rate. Standard users pay less for electricity per unit, but a higher daily rate.
Not sure if you’re getting the best electricity prices around with your current provider? It might be worth checking out what’s currently available on the market. You might be surprised as to how much cheaper it is with another provider!
Head on over to our power comparison tool, where you can find the best and latest deals available in your area. If you find a cheaper plan that suits you better, it’s easy to make the switch over to another provider. Just let us know a few details - like your address and how you use power - and we’ll list all the options available, sorted by best price and value for money.
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