NZ Power Users Get More Flexible Pricing Options

Energy Minister Simeon Brown said the changes require major electricity companies to offer time-of-use pricing plans, giving customers more control over how and when they use electricity.

New Zealand households and small businesses can now choose electricity plans that charge different rates depending on the time of day, following new rules that came into effect today. Energy Minister Simeon Brown said the changes require major electricity companies to offer time-of-use pricing plans, giving customers more control over how and when they use electricity. The move is designed to help people reduce their power bills by shifting some of their electricity use to periods when demand, and prices, are lower.

Until now, many large power companies generated electricity at varying costs throughout the day but generally sold it to residential and small business customers at a single flat rate, regardless of when electricity was used.

Lower Rates During Off-Peak Hours

Under the new pricing structure, electricity rates will usually be divided into three periods. Peak hours, typically between 7am and 10am and 5pm and 9pm, will have the highest prices because demand is greatest. Off-peak or shoulder periods, usually from 10am to 5pm and 9pm to 11pm, will offer lower rates, while the cheapest electricity will generally be available overnight between 11pm and 7am.

Families and businesses that can run appliances such as washing machines, dishwashers, hot water systems, or electric vehicle chargers outside peak hours could see noticeable savings on their monthly power bills. Customers are encouraged to check with their electricity retailer to see whether a time-of-use plan matches their daily routines and energy needs.

Better Rewards for Solar Power Exports

The new rules also bring added benefits for households with rooftop solar panels and battery systems. Electricity exported back to the grid under time-of-use pricing can now attract higher payments during periods of strong demand, giving solar owners greater financial rewards when they supply power at the times it is needed most. This builds on the Government's recent decision to increase the export limit for households from 5kW to 10kW, making it easier for more homes to contribute renewable electricity to the national grid.

The Government says these changes form part of its broader effort to deliver more affordable, reliable and flexible electricity while giving consumers greater choice. People interested in comparing available plans or estimating potential savings can use the Electricity Authority's free comparison tool at billy.govt.nz.