Is switching power company safe? What actually happens in NZ

Changing power company sounds like the kind of job that could leave you in the dark for a day. It does not. In New Zealand a switch is paperwork between two retailers, and the Electricity Authority says it takes 3 to 4 days on average. Here is what goes on in that time, and the handful of things that are worth a minute of your attention.

What changes and what does not

Three layers sit behind your power. Your lines company owns the poles, wires and usually the connection to your house; it is fixed by where you live. Transpower runs the national grid. Your retailer buys power on your behalf, sets your daily charge and unit rates, and sends the bill.

Switching only swaps the retailer. Nobody visits, the meter stays where it is, and the lines company carries on as before. Asked whether the power gets cut off during a switch, Powerswitch’s answer is “Definitely not!”, because electricity supply is tightly regulated.

The one exception is a meter change. Some plans, such as time-of-use plans, need a smart meter. The Electricity Authority says the new company may be able to install one if you do not have it, though there may be a cost, and it arranges the timing with you.

Who does the work

You choose a plan, on Billy, Powerswitch or directly with a retailer, and agree to its terms. The Electricity Authority is clear about the next step: your new power company arranges the transfer for you. You do not have to ring the old one to leave.

Your jobs are small. If you pay by direct debit, Powerswitch reminds you to cancel it with your bank for the old retailer. Pay the final bill when it comes. And if the new company asks for a bond (an upfront lump sum), the Consumer Care Obligations require it to be clear about that before you sign.

How long it takes, and what you will see

Expect 3 to 4 days on average, according to the Electricity Authority. In that time you keep using power as normal. Usually you get a welcome message from the new company, then a final bill from the old one covering the days up to the switch. Clicking “switch” on a comparison site does not move you on its own: the switch starts only once you have agreed to the new retailer’s terms. If you want to know what plans reach your address before you start, Billy’s comparison covers around 97% of Kiwi homes.

Break fees: check before, not after

Switching itself is free. The cost can come from the plan you are leaving. On a fixed-term plan there may be a break fee, and the Authority’s advice is to read your terms and, if there is one, talk to your power company about how it applies. Open-term plans usually have none. If the fee is large and the fixed term ends soon, it can pay to wait; set a reminder rather than letting the date slip past.

Cold calls and door knocks

Power deals are still sold on the phone and at the door. Under the Fair Trading Act, if a trader approaches you uninvited and the deal is worth more than $100, or the price is uncertain, you get 5 working days to cancel. Consumer NZ uses exactly this case as its example: an electricity deal agreed over the phone that you later think better of.

The seller must tell you about that cooling-off period and how to cancel, and the written agreement must show it on the front page along with the price and the seller’s contact details. If those rules are broken, the agreement may not be enforceable against you.

Treat these as warning signs: a caller who wants your ICP number or bank details before you have seen anything in writing, pressure to agree “today only”, or claims to be from your lines company or the government. Say no, then look the plan up yourself on Billy or Powerswitch.

If you rely on power for your health

Since the Consumer Care Obligations became mandatory, every retailer must ask whether someone in your household relies on electricity to prevent serious harm to health, help you register as a medically dependent consumer, and must not disconnect you. When you switch, make sure the new company knows and registers you straight away.

The same obligations require retailers to keep fees reasonable and to support customers who are struggling to pay, so a history of hard months is not a reason to stay put.

If a company leaves the market

Retailers do come and go. When one exits, its customers are transferred to another company rather than left without supply. Gas Industry Co records two recent examples in gas: Frank Energy’s customers moved to Genesis Energy in early 2025, and MegaTEL’s customers were switched to its parent company Nova in 2026. If it happens to you, check the plan you land on and compare, exactly as you would at any other time.

Free help when something goes wrong

Raise it with your retailer first, in writing if you can, and note dates and reference numbers. If that does not sort it out, Utilities Disputes resolves complaints about electricity and gas companies for free. Call 0800 22 33 40 or go to udl.co.nz.

Plenty of people are doing it

Billy, the Electricity Authority’s own comparison service, recorded more than 8,500 switches started through it in its first six months, on top of the switching done through Powerswitch and directly with retailers. Changing company is normal. When you are ready, you can compare plans for your address, and a free contract alert will remind you before a fixed term ends.