How to cut your power bill in New Zealand: what works in 2026-27

Power prices have risen about 20% in two years, Consumer NZ says, and most of the pain lands in winter, when heat pumps and heaters run for hours from Invercargill to Whangārei. Spring is the right time to get ahead of next winter. The cheapest savings are in how you buy power and when you use it, not in sitting in the cold.

The price you pay: plan, hours and daily charge

Check you are not paying a loyalty tax. Consumer NZ found in June 2026 that more than a million households are probably paying too much, and half have stayed with the same retailer for five years or more. Run last year’s usage through Billy, Powerswitch or our comparison page. Ask your current retailer too: it may have a cheaper plan it did not mention.

Try a time-of-use plan if you can shift usage. Since 1 July 2026, retailers with 5% or more of the market must offer a plan with cheaper off-peak power. The Electricity Authority describes the usual pattern: peak 7 am to 10 am and 5 pm to 9 pm, shoulder 10 am to 5 pm and 9 pm to 11 pm, and night, the cheapest, from 11 pm to 7 am. Dishwashers, washing machines, dryers and EVs on a timer can move almost all their use out of the peaks. Heating is harder to shift, so a time-of-use plan suits some homes far better than others. You need a smart meter that records half-hourly data, and you should compare on that data.

Get ready for the end of low user plans. The low fixed charge regulations, which capped the daily charge on low user plans, end on 1 April 2027. The Electricity Authority wrote to lines companies on 22 September 2026 asking them to avoid sharp increases, but low users should expect a higher daily charge. If you use little power, compare standard plans now so you know your options before April.

Look at the power part of a bundle on its own. About 30% of energy customers have power bundled with broadband or mobile, Consumer NZ says. A bundle is fine if the power price holds up by itself.

Money you may already be owed

If you get NZ Super, the Veteran’s Pension or a main benefit such as Jobseeker Support or Sole Parent Support, the Winter Energy Payment is paid automatically from 1 May to 1 October: $20.46 a week for a single person without dependent children, $31.82 for couples and people with dependent children. You do not apply. But if you once opted out, Work and Income will not restart it unless you ask, so check your payments before next May.

Keeping the heat in

EECA recommends heaters set between 18 and 21°C, and says heating only the rooms you use can save up to $350 a year. A heat pump set to 21°C at most uses about 2% less than one pushed higher, and a clean filter saves around $50 a year: five minutes with a vacuum cleaner.

Heat escapes through glass. Closing curtains or blinds at sunset is worth $80 to $90 a year on EECA’s figures, and thick, lined curtains that reach the floor do the most. Draught-proofing gaps around doors and windows cuts the related heating demand by about 15%, for the price of a door snake and some seals.

The bigger step is insulation. Warmer Kiwi Homes pays 90% of insulation costs for Community Services Card or SuperGold Combo holders and people in high-need areas, 80% in certain areas and 50% in middle-income areas. The home must be owner-occupied, built before 2008 and without existing ceiling and underfloor insulation. Once it is insulated, heating grants of up to 90%, capped at $3,450, are available to cardholders and people in low-income areas. EECA notes funding is limited, so apply early.

Hot water and the laundry

Heating water is one of the larger loads in most homes, especially with an electric cylinder. EECA estimates an efficient shower head saves a four-person household about $80 a year, and washing clothes in cold water about $30 a year at four washes a week.

Standby and old appliances

Appliances on standby can add up to $200 a year, EECA says. Turn off TVs, consoles and chargers at the wall, and think hard about the second fridge in the garage. When something does need replacing, an efficient model saves about $140 a year on EECA’s estimate; more stars on the Energy Rating Label means lower running costs. Our appliance calculator shows what an old heater or fridge actually costs to run.

Gas and LPG

If you use bottled LPG, prices have been under pressure: Rockgas added temporary price adjustments of 4.1% in May and 3.8% in June 2026, linked to the Middle East conflict, according to Gas Industry Co. Reticulated gas faces falling domestic supply. If a gas heater or gas hot water system is due for replacement, our heat pump calculator gives a first comparison of running costs.

Where the money is

For most homes, the plan, the hours and the daily charge change the price of every unit you buy, and insulation and heating habits cut the biggest winter load. The rest adds up to a few hundred dollars a year. Many retailers change prices on 1 April, so that is the natural date to compare again, and a free contract alert can remind you when a fixed term is up.