Billing reforms introduced from 30 October

New rules to protect consumers from bill shock and make power bills clearer and easier to compare will start being introduced from 30 October.

However, power companies now have until 1 April to fully implement the suite of billing improvements to ensure these are delivered effectively and without any issues affecting consumers.

“The scale and significance of these reforms warrant a cautious approach. We’re balancing the need for consumers to receive the benefits of these changes as soon as possible with the requirement for due care when implementing reform this consequential.

“As the regulator, we received information about the challenges of implementing all the required changes by 31 October.

“While the rule changes apply to all power companies, we’re particularly mindful of impact on smaller retailers. This includes not-for-profits that provide power and other services in their communities that have fewer resources available for making system changes,” says General Manager Retail and Consumer Andrew Millar.

“We expect many retailers will still be able to meet the original 30 October go-live date and will choose to introduce the new requirements as soon as they’re ready.

“We strongly encourage them to do so. These are important changes that will make a meaningful difference for many Kiwis.”

Under the new rules, power companies will be required to check annually that their residential customers are on the best plan they offer and ‘back bills’ are restricted to six months. Billing information will also be clearer, more consistent and easier to compare.

The revised deadline of 1 April 2027 means power companies have an additional five months to meet their legal requirement to implement the reforms. However, the Authority anticipates that some power companies won’t need this extra time.

Where power companies voluntarily comply with the new rules ahead of the 1 April deadline, the Authority will publish this on their website.

The Authority recognises that changing core billing systems can be a significant and complex undertaking for retailers, often involving multiple systems.

“I can’t stress enough how important it is that the changes are implemented properly. Allowing the few extra months for implementation gives us the confidence we won’t see billing errors, customer confusion or poor customer experiences.”