Electricity Lines Companies Continue Their Support To Keep Power Bills Down

Today, the Ministry of Business, Innovation & Employment released a mid-point review of the phase-out of the Low Fixed Charge Regulations. These regulations were introduced in 2004 and put a cap on daily fixed charges for ‘low users’ of residential electricity.

However, these low fixed charges have had unintended consequences, negatively impacting many New Zealanders — particularly large families and those living in poorly insulated homes. In 2021, the Government decided to phase-out the regulations.

Electricity Networks Aotearoa Chief Executive, Tracey Kai, said getting rid of these inequitable regulations is good for Aotearoa. “We’re pleased that the review of the phase-out shows that there are more winners than losers.

“Electricity must remain affordable. And at the same time, we need to ensure we have reliable and sustainable electricity for all New Zealanders. So, striking the right balance between investing in our electricity system and keeping it sustainable and equitable for consumers, is critical,” says Kai.

As part of the phase-out, which will be completed in 2027, all electricity lines companies in New Zealand have partnered with large retailers to fund the Power Credits Scheme. It’s a fund that provides $1M per year to help consumers who have been on the low fixed charge regime and are experiencing energy hardship. By the time the phase-out ends, the scheme will have delivered $5M in support over five years.

This $1M per year support fund has now been extended through to 2032, with continued contributions from lines companies and retailers. The fund will help single-person households, where the occupant is over 65 years-old or has one of the lowest household incomes. These single-person households were identified in the report as most affected by phasing out the regulations.

“In addition to the extension of this fund, lines companies provide a significant number of initiatives across the country to help people who struggle to pay their power bill. They partner with over 40 community groups and organisations that provide tangible support to people in their communities.

“Support can range from things like helping consumers get thermal curtains put in their homes, changing out old light bulbs to LEDs, funding heat pump installations, and hosting community events to educate people on how to save money on their power bill or by switching power companies.

If you want to find out if you are eligible for the Power Credits Scheme, please contact your retailer. That’s the company who send you your power bill.

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