New rules for power companies to improve bills, reduce bill shock and introduce product information standards

The Electricity Authority Te Mana Hiko has announced new rules to protect consumers by improving electricity bills, preventing large back bills and requiring power companies to regularly check their customers are on the best plan they offer.

Under the new rules announced in Improving electricity billing in New Zealand, billing information will be clearer and more consistent, with charges explained in plain language. The changes will make it easier to compare plans, and improved prompts will direct people to the Authority’s new comparison and switching website to check for better deals and switch if they choose.

Large back bills will be limited to a maximum of six months to reduce the risk of bill shock for households. Power companies will also be required to check annually that their residential customers are on the best plan they offer ─ and help them change at no cost if they’re not.

Authority Chief Executive Sarah Gillies says the package of changes are about strengthening retail competition and empowering consumers with clearer information, easier switching and protections against back bills.

“We’re giving people better information about the power they use and pay for, so they have the confidence to shop around. We also want to reduce the stress of unexpected back bills for households and small businesses.

“Standardisation is part of the story too,” says Gillies. “Today we’re also announcing new product information standards, requiring retailers to provide structured and consistent information about their power plans. This will improve the accuracy of comparison websites, and bring transparency, accountability and long-term value for New Zealanders.”

The Authority is also launching a new comparison and switching website soon, free from commercial interest and designed to keep pace with changes in the electricity market.

Around 1,500 electricity consumers provided feedback during consultation, with more than 90% supporting the proposed changes.

General Manager Retail and Consumer Andrew Millar says these decisions complement the Authority’s wider work to improve market settings and strengthen competition, including introducing new level playing field measures for the energy sector.

“This is about demand-side competition. When consumers can see, compare and switch more easily, retailers will have to compete harder on price and service. That delivers long-term benefits for consumers across the market.” says Millar.

As the next step in standardising product information, the Authority will shortly consult on options for the revised Electricity Information Exchange Protocol – EIEP14A for retailer product information to ensure plan data is consistent, accessible and fit for accurate comparison and switching tools.

Rule changes announced today will take effect on 30 October this year.