Power's up 9%: how to stop your power bill wrecking your week
By KiwiBudget Team ·
If you've opened a power bill this year and done a double take, it's not just you. In our cost of living TikTok we put it simply: "Power? Up 9%." Then we asked whether your pay had kept up. Yeah, nah.
The number is real. Stats NZ says electricity prices rose 9.3% in the 12 months to the September 2026 quarter. Electricity on its own made up 7.2% of the whole 3.7% rise in consumer prices that year.
As Jack Ridder, who founded KiwiBudget here in Invercargill, wrote on our Back KiwiBudget page, the money tools most of us use were built for other countries, and "they have no idea why the power bill doubles in July."
Here's why power costs more, and four things worth doing now, while winter is a long way off.
1. Why power costs more this year
Stats NZ tracks prices. The Electricity Authority tracks bills, and it found household and small business bills rose 6.8% on average from 1 November 2025 to 30 June 2026, after 8.0% in 2025. For households whose price changed, the average rise was 8.7%.
The biggest driver was lines charges, 54% of that increase. They pay for the networks that carry power to your house, and the Commerce Commission says they're just over 30% of the average bill. Its reasons for the rise include recent high inflation, higher interest rates, equipment built in the 1960s and 1970s that needs replacing, and more frequent extreme weather. It says these costs are "likely to keep rising until at least 2030".
A bit of good news: wholesale prices have been falling, and the Electricity Authority "expects the lower generation costs to benefit consumers shortly". It hasn't shown up on every bill yet. On 19 October, 1News reported that higher lines charges are still pushing bills up, and that some customers of one power company have been told their rates will go up from 3 December.
2. Spend a few minutes comparing plans
Start here. It's free, and Powerswitch says it takes about three minutes, so you'll be done before your cuppa's cold.
- Powerswitch (powerswitch.org.nz) is a not-for-profit backed by Consumer NZ. It compares 15 energy providers, "ranked by price, not promotions". Enter your address or upload a bill. Powerswitch says its users can save around $450 a year on average. That's its figure; yours depends on your house and plan.
- Billy (billy.govt.nz) is the Electricity Authority's free, publicly-owned comparison and switching site, launched on 26 March 2026. It takes no commissions and doesn't promote any power company.
Before you switch, check for fixed terms and exit fees, and look at plans with cheaper off-peak power. Flatting as a student? Our cold flat guide covers what your landlord has to provide.
3. Check your plan type before April 2027
This one matters if you live alone or don't use much power.
Power companies have had to offer a low fixed charge plan, with a capped daily charge, for low-use homes: those using under 8,000 kWh a year, or 9,000 kWh in the lower South Island. The trade-off, as MBIE explains, is that people on these plans pay higher charges for the electricity they actually use.
The cap is being phased out in steps. It was 30c a day before 1 April 2022 and has gone up 30c every April since, to $1.80 a day (excluding GST) from 1 April 2026. On 1 April 2027 the rules are due to be removed, and from then power companies won't have to offer a low fixed charge.
In the same 1News report, Powerswitch manager Paul Fuge said that as fixed charges rise, people have less room to cut their bill by using less. He also said: "Two households with similar electricity use in the same street could see quite different outcomes depending on their retailer."
What to do:
- Find two numbers on your bill: the daily charge and the price per kWh.
- Compare again using your yearly use (from 12 bills, or ask your power company), and once more before 1 April 2027.
- Struggling to pay, and on a low-use plan in the last six months? The Power Credits Scheme gives a $110 credit for your main home. Ask your power company.
4. Spread the bill so winter doesn't ambush you
A bill that's fine in February and brutal in July is hard to plan around on weekly or fortnightly pay. If you live somewhere cold (kia ora, Southland), that gap is the thing to plan for. And if you got the Winter Energy Payment, the 2026 payment ended on 1 October, so your summer bills land without it.
Two ways to flatten the bumps:
- Pay weekly or fortnightly. Ask your power company if you can pay a set amount each pay, timed for just after payday.
- Do it yourself. Add up the last 12 months of bills, divide by 52 (weekly) or 26 (fortnightly), and set that aside every pay. In the warmer months you'll put away more than the bill, and that's the point.
Example (made up): a household's power bills over the last year came to $2,600. That's $50 a week, or $100 a fortnight. In a $120 summer month, the leftover goes into a "winter power" savings goal, ready for a $350 July bill.
Recheck it each April. This year, that's when most households' bills went up. For more per-pay maths, see our fortnightly budgeting guide.
5. Use a bit less, without freezing
These tips are from EECA, the Energy Efficiency and Conservation Authority. Each figure is EECA's estimate for one change, so don't add them up.
- Start with hot water. It's around a third of household energy bills. Cutting a shower from 15 minutes to 5 saves around 66c a shower, about $5 per person a week.
- Wash in cold: could save around $30 a year at four washes a week.
- Heat the rooms you're in. Close doors to the others and seal up draughts: up to $350 a year.
- Close curtains at sunset, not bedtime: $80 to $90 a year.
- Clean the heat pump filter monthly in the colder months: about $50 a year. EECA suggests 18 to 21°C on the thermostat.
- Switch off at the wall. Devices on standby can add up to $200 a year.
Own and live in a home built before 2008? EECA's Warmer Kiwi Homes programme can pay 50% to 90% of ceiling and underfloor insulation, depending on your area and whether you hold a Community Services Card or SuperGold Combo card. Funding is limited, so check the EECA website or call 0800 749 782. Rentals aren't included.
If the bill is already too much
Call your power company early, before it turns into a disconnection notice, and ask what help it offers. MoneyTalks is free and confidential: call 0800 345 123, free text 4029, or visit moneytalks.co.nz.
How KiwiBudget helps
KiwiBudget is built around your payday, weekly, fortnightly or monthly. Your must-pays come first: rent, bills like power, insurance and repayments, then the rest. As Jack wrote after his RNZ interview, "The home screen doesn't just show your bank balance. It shows what's safe to spend between now and your next pay." Set up a savings goal for winter power and watch it build. Bank connection is read only, through Akahu, from the Sync plan (see pricing), or add spending by hand or upload a statement for free. KiwiBudget launches on 16 November 2026, on iPhone, Android and the web.
Quick answers
Why are power prices going up in NZ?
Lines charges were the biggest driver, 54% of the rise in bills from November 2025 to June 2026, says the Electricity Authority. The Commerce Commission expects lines costs to keep rising until at least 2030.
Is the low fixed charge ending?
Not yet. Since 1 April 2026 the cap has been $1.80 a day, excluding GST, and the rules are due to be removed on 1 April 2027.
How do I compare power plans in NZ?
Powerswitch (backed by Consumer NZ) and Billy (from the Electricity Authority) are both free, and both let you upload a recent bill.
What if I can't pay my power bill?
Talk to your power company before it becomes a disconnection notice, and call MoneyTalks on 0800 345 123 for free, confidential help.
This is general information, not personalised financial advice.
Join the waitlist and we'll let you know the moment KiwiBudget opens on 16 November 2026.