Extended Support On The Way During The Low Fixed Charge Tariff Phase-Out

The Electricity Retailers’ Association of New Zealand (ERANZ) and Electricity Networks Aotearoa (ENA) are pleased to announce that members from both organisations will extend the industry-funded Power Credit Scheme from 2027 to 2032.

The Power Credits Scheme is a $5 million fund that began in June 2022. It assists low-electricity-use households struggling to pay their power bills as the Low Fixed Charge Tariff (LFC) regulations are phased out.

ERANZ Chief Executive Bridget Abernethy says the LFC phase-out is working as intended, rebalancing consumer bills' fixed and variable components.

“We understand that the phase-out isn’t easy for everyone, so ERANZ and ENA members are extending the scheme for five years, putting $1 million per year back into the hands of struggling consumers.”

Abernethy says she is pleased to see the Ministry of Business, Innovation and Employment (MBIE) Mid-Point Review of the Phase-out of the Low Fixed Charge, which was released today, confirm that the phase-out of the LFC regulations means more equitable electricity bills for standard users.

“Before the phase-out, high-income households with low electricity consumption received lower electricity bills, which came at the expense of larger low-income households with relatively high electricity consumption.”

Abernethy says anyone who is struggling should get in touch with their retailer to see what support is available to them. Consumers can also check with their retailer that they are on the right plan for their needs.

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