Your power bill is more than just numbers and charges — it’s a tool to help you make informed decisions about your energy use.
We break down what you’re being charged for and why, so you can spot where you might be using more energy than you need, and find ways to manage costs with more confidence.
The average household electricity cost is about $165 per month in summer and $240 in winter, totalling about $2,343 each year.
Ministry of Business, Innovation and Employment, 2024
Understand your charges
Every bill is a little different depending on your provider, but most will include some common components. We’ve broken down each item, along with ways to save.
Daily fixed charge ($/day)
This is the set daily fee to get electricity from power stations to your home through national and local power lines. It remains the same no matter how much power you use.
- Savings tip: Different power plans have varying daily fixed charges, so check if you're on the right one for your usage.
Variable charge (c/kWh)
This is the cost, in cents per kilowatt-hour (kWh), for the electricity you’ve used during the billing period.
- Savings tip: If your rate is high, compare plans on Powerswitch. Check this along with the daily fixed charge to find the best deal. You may save by switching to a cheaper provider or one with off-peak discounts.
Compare and find cheap energy plans | Powerswitch(external link)
Time-of-use pricing
Some power companies charge more during peak hours (usually 7–9am and 5–9pm) and less during off-peak times.
- Savings tip: If you’re on a time-of-use plan but chew through most of your power during peak hours, shifting tasks like laundry, dishwashing, or EV charging to off-peak times could cut costs. If your plan doesn’t offer off-peak incentives and you have flexible power needs, switching to a plan that does could be worth looking into.
How to get cheaper power bills with a time-of-use plan | Powerswitch (external link)
Discounts and penalties
Check if you’re missing out on prompt payment discounts or getting hit with late fees.
- Savings tip: Some providers let you pay a fixed monthly amount based on your average usage. This helps with budgeting by spreading costs evenly throughout the year and avoiding big winter spikes.
Bundled charges
If your plan includes other utilities, such as gas or internet, you’ll find these charges on your bill as well.
- Savings tip: Bundling utilities can simplify your bills, but it might not be the cheapest option. These plans often lock you into a contract with termination fees, making it harder to switch to better deals.
3 things to think about with bundled plans — Powerswitch NZ(external link)
If you’ve been with the same provider for years, you could be missing out on better deals. If you find a cheaper plan, talk to your provider ― they may match it to keep you on board.
Review your usage trends
Most power bills include a usage graph showing your energy consumption over time ― this data can reveal hidden ways to save.
Seasonal spikes
It’s normal for power bills to be higher in winter, but if they’re through the roof, your heating might not be working well. Using a heat pump, adding insulation, or getting better curtains can help keep your home warmer and your costs down.
Heat pumps — energy-efficient home heating
High bills all year long
Old appliances, extra fridge/freezers, or devices left on standby could be driving up your power bill. A smart plug or home energy monitor can help you find the biggest energy users. On average, a household could save up to $1,000 per year by switching to energy-efficient appliances. Use our home energy savings calculator to see how much you could save.
Home energy savings calculator
Compare to similar homes
Some power bills show how your usage compares to similar households. If you’re using a lot more, check out our list of easy energy-saving habits ― simple actions like washing clothes on cold or swapping traditional lightbulbs with LED lighting can make a big difference.
Do a healthy home check
If you’re finding it hard to manage your power use, a healthy home check could help. You can do this online, or with a certified advisor, to find out:
- if your home has good ventilation and insulation to keep in heat
- how efficient your heating, hot water, and lighting systems are
- if your rental meets New Zealand’s Healthy Home Standards.
Home Energy Audit Toolkits
Some local councils and libraries lend out Home Energy Audit Toolkits (HEAT kits) to help you measure where energy is being wasted in your home. These kits often include a power meter, thermometers, and insulation check tools. Ask at your library or check your local council's website to see if HEAT kits are available.
If you’re finding it hard to pay your power bill, reach out to your provider. They may be able to help with payment plans, extensions, or other support.
Your power bill savings checklist
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1
Check your plan
Use Powerswitch to compare plans and either switch or negotiate a better deal with your current provider.
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2
Shift usage to off-peak times
If you’re on a time-of-use plan, run power-hungry appliances when rates are lower.
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3
Tackle energy drains
Unplug devices or use smart plugs to stop standby power drain.
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4
Upgrade where it counts
If your fridge, washing machine, or heat pump is over 10 years old, upgrading it to an energy-efficient model could mean significant savings.
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5
Improve home efficiency
Good insulation, LED lighting, and efficient heating make a big difference, especially in winter.
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6
Calculate your home savings
Use our home energy savings calculator to see how energy-efficient appliances could save your household up to $1,000 a year.
Read next
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Green loans for your home
Discounted finance options as low as 0% are available to help you transition your home or car to be more energy efficient.
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Switch on efficiency
See how much you could save on running costs by choosing energy-efficient appliances.
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Is your power plan right for you?
Power bills take up a big chunk of household expenses, but switching to a better plan could save you money.