Tips8 April 2026 Updated 9 Apr5 min read

How to Switch Power Companies in NZ (Save $200-400/Year)

NZ households overpay $300-800/year on power. Switching takes 10 minutes and costs nothing. Here's exactly how (with the free govt tool).

Illustration of a NZ power meter with a switch comparing two providers

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Most New Zealanders are paying too much for power. The average household could save $200-400/year by switching — and it takes about 10 minutes. It's one of the biggest quick wins when you're trying to save money in NZ.

Why you're probably overpaying

Power companies in NZ count on inertia. Once you sign up, you rarely compare rates again. Meanwhile:

New plans launch regularly
Competitors offer sign-up credits
Your usage patterns change (working from home, new appliances)
Loyalty doesn't get rewarded — new customers often get better deals

Step 1: Know what you're paying

Find your current costs

Check your latest power bill for:

Daily fixed charge (cents/day) — this is charged regardless of usage
Usage rate (cents/kWh) — what you pay per unit of electricity
Monthly total — your actual spend

Steady tip: Steady auto-categorises your power payments under "Bills & Utilities > Power." You can see exactly what you've paid over the last 12 months and spot any increases.

Step 2: Use Powerswitch

The free government comparison tool

Go to powerswitch.org.nz — it's run by Consumer NZ and the Electricity Authority. It's free, unbiased, and compares all NZ power companies.

You'll need:

Your address
Current power company
Approximate monthly usage (from your bill, or Powerswitch can estimate)

Powerswitch shows you:

How much you'd pay with every available plan
Estimated annual savings for each switch
Whether fixed or variable rates suit you better

Step 3: Switch

Switching is free and easy:

Choose your new plan on Powerswitch
Click through to sign up with the new company
Your new company handles everything — they contact your old company, arrange the meter reading, and switch you over
No interruption to supply — your lights stay on the whole time
No exit fees on most residential plans (check first)

The whole process takes 10 minutes online, and the switch happens within 1-2 weeks.

Tips for saving more

Low-user vs standard plans

If you use less than 8,000 kWh/year (small household, efficient home), a low-user plan with a lower daily charge might save you money. Powerswitch will recommend the right plan type.

Time-of-use pricing

Some companies offer cheaper rates at off-peak times (9pm-7am). If you can run your dishwasher, washing machine, and dryer overnight, you could save 20-30% on usage charges.

Prompt payment discounts

Many companies offer 10-20% discounts for paying on time. Set up a direct debit and you'll never miss it. Automating your bills is one of the simplest money wins.

Steady tip: Set up bill reminders in Steady for your power payments — you'll get a notification 3 days before it's due, so you never miss the prompt payment discount.

What about gas?

If you have gas, Powerswitch compares gas plans too. The process is identical — compare, choose, switch, save.

The bottom line

Switching power companies is the highest-return, lowest-effort money decision most Kiwis can make. Ten minutes on Powerswitch could save you $200-400/year — every year. Set a calendar reminder to compare annually. While you're at it, audit your subscriptions too — and track all your bills in one place.

Written by Sam Wilson

Founder, Steady

Sam is a New Zealand founder building Steady — a personal finance app designed for Kiwis, integrated with every major NZ bank via Akahu. He writes about money, bank integrations, and what actually works for everyday New Zealanders.More about Sam