Better bills will help consumers find better plans, says Electricity Authority

The Electricity Authority Te Mana Hiko (Authority) says proposed changes to simplify electricity bills will make it easier for consumers to find the right plan for them and pay less for power.

The Authority is asking for feedback on changes to give people more choice, more control and better value on their electricity.

“Everyone should have access to affordable electricity,” says Electricity Authority Chief Executive Sarah Gillies. “We want every New Zealander to know if they’re on the best plan for them, and be able to easily compare their plan and switch power companies.”

The changes proposed in Improving electricity billing in New Zealand would provide people with the information they need to easily compare and switch plans, and lay the foundations for future smart services. The proposed changes would make bills consistent, easy to read and more useful to consumers.

Importantly, power companies would also be required to check in with their customers every six months and advise if there’s a better plan for them based on their use. Customers trialling time-of-use plans would be better protected as the changes would introduce a review after three months with the option to return to their old plan – or switch to a better one – if they’re not saving money. Any penalty for changing plans with the same provider would be removed.

Back bills, or catch-up bills, which can cause ‘bill shock’, would also be limited by capping how far back retailers can charge. This protection would also be extended to small businesses.

“A large, unexpected bill can be a real shock on budgets and stress levels, especially for those already under financial pressure. As well as consumers facing energy hardship, we’re acutely aware that many small businesses are also doing it tough. We want to protect consumers and small businesses from those sudden and unmanageable costs,” Gillies said.

A lack of standardised data has been a barrier to helping consumers access the best plan for them. Following consultation, the Authority has decided to replace voluntary Electricity Information Exchange Protocol 14 (EIEP14) with a regulated, modular suite of new protocols. The Authority also proposes a new system that assigns a unique code to every retail electricity plan, so they can be easily compared.

“Bills should not be confusing, and you shouldn’t have to be an energy expert to get the best deal. Whether you’re hands-on or hands-off, you’ll benefit from a more transparent and consumer-focused electricity system,” Gillies said.

We welcome your feedback on Improving electricity billing in New Zealand proposal by 5pm, 5 November and the Proposed Code amendments to improve access to electricity product data proposal by 5pm, 18 November.

You can also read our consumer facing booklet and take the survey to submit feedback.