Simon Watts Welcomes Extension of Power Credit Scheme for Struggling Kiwis

The Power Credit Scheme, which currently offers a $110 power credit to eligible households, has been instrumental in easing the financial burden for many families.

Energy Minister Simon Watts has announced a significant extension to the industry-funded Power Credit Scheme, providing much-needed financial relief to lower-income New Zealanders grappling with rising energy costs. The extension, which will continue until 2032, aims to assist households that are struggling to meet their power bills and those affected by the phase-out of a low fixed electricity charge.

The Power Credit Scheme, which currently offers a $110 power credit to eligible households, has been instrumental in easing the financial burden for many families. By offering this credit, energy providers are able to provide support to individuals who face difficulties in paying their energy bills, particularly in light of recent increases in power prices. The extension of the scheme is part of the government’s ongoing efforts to combat the rising cost of living and provide financial relief to Kiwis during challenging times.

"Extending the Power Credit Scheme is a key part of our efforts to help those who need it most," said Minister Watts. "The financial pressure that many households are under is real, and we want to make sure that people are not forced to choose between paying their power bills and other essentials like food and rent."

The scheme was initially introduced to help those households most affected by the phase-out of the low fixed electricity charge, which has been a significant issue for many lower-income Kiwis. However, with the increasing costs of living, the extension of the scheme comes at a crucial time for many families across the country.

Minister Watts emphasized the ongoing efforts of the government to tackle cost-of-living challenges in New Zealand. "We know that it's been a tough time for many people, with inflation impacting everyday costs and making it harder for households to budget. That's why we are working tirelessly to help ease this burden and provide practical support where it's needed most."

The extension of the Power Credit Scheme is part of a broader set of measures designed to support Kiwi families. Alongside this, the government has also focused on addressing inflation, delivering tax relief that has helped put more money back into the pockets of Kiwis, and offering further support through programs such as FamilyBoost, which provides assistance with childcare payments for families.

Despite these efforts, Minister Watts acknowledged that many households are still feeling the strain of rising living costs, including increased power prices. "The pressure on household budgets is real, and recent increases in power prices will only make things more difficult for many families," he said. "That’s why we’ve worked closely with major electricity retailers and lines companies to secure a five-year extension to the Power Credit Scheme. This extension will provide a safety net for households through to 2032."

The Minister also expressed gratitude to the larger retailers and lines companies for their continued support in providing the scheme, acknowledging that their commitment has been crucial in delivering this much-needed assistance to New Zealanders. "I want to thank the electricity retailers and lines companies for their partnership in this scheme. It is thanks to their support that we can continue offering this relief to households who are most in need."

Minister Watts encouraged all households affected by the phase-out of the low fixed electricity charge to check with their power providers to see if they are eligible for the credit. "If you are coming off a low fixed charge plan, be sure to reach out to your power company to see if you qualify for the power credit. This scheme is here to help, and I encourage everyone who is eligible to take full advantage of it."

With the extension of the Power Credit Scheme, Minister Watts emphasized that while progress is being made, more work remains to be done. "We know that things won't change overnight, but we are committed to supporting New Zealanders through these challenging times. Our plan to reduce the cost of living, grow the economy, and help Kiwi households get ahead is already delivering results, and we will continue working hard to ensure that every Kiwi has the opportunity to thrive."

The extension of the Power Credit Scheme reflects the government's broader commitment to reducing the financial strain on New Zealanders, helping families to weather the challenges of rising living costs and ensuring that support is available for those who need it most.

As the cost of living continues to rise, the Power Credit Scheme stands as an important lifeline for lower-income households, providing essential financial relief and helping families manage their energy bills.