*** Take the Power Bill Challenge today – you have nothing to lose… but money to gain! - Click here ***

Why do Power Companies offer Standard and Low User options?

Friday, January 19, 2018
Why do Power Companies offer Standard and Low User options?


Whether you are a Low Power User or a Standard Power User is one of the first things to consider when you compare power companies and compare power plans in New Zealand.  If you are looking for the cheapest power company for you then that will differ relating to the type of power tariff you are on.  

For example, if you are on a low user power tariff but actually use a lot of electricity and power than you will be paying too much for your electricity when compared to being on a standard user plan where you will pay a bigger daily fixed charge but have a lower cost per kW/h energy unit.

The reason that power companies in NZ offer low user power plans as well as standard user power plans is because the Government says that they have too!  Power companies in NZ are required by the Government to offer a low user tariff under the Electricity (Low Fixed Charge Tariff Option for Domestic Consumers) Regulations 2004.  This means that all energy providers must offer Low User plans.  If you want the full details you can read the regulations on the New Zealand Legislation website here


Low User Power Plans

If you use less than 8000 units a year (This rises to 9000 units in parts of the lower South Island) at your main residence (and not, for example, the family bach), then a Low User Power Plan option may be best for you. 

You would pay your power bill in two parts as normal – this would be:
Fixed Daily Charge – On a low user plan this is a lower daily fixed charge
Per Unit Used Charge – On a low user plan this is a higher variable charge and applies for each unit of electricity you use.  Low User Power plans are normally only available for your primary residence.

Find the best low user power plan in NZ here


Standard User Power Plans

If you use more electricity than 8000 kW/h then you should probably be on a Standard User power plan option as this will likely work out better for the wallet. 

You would pay your power bill based on this criteria:
Fixed Daily Charge – On a standard user plan the daily fixed charge is at a higher rate
Per Unit Used Charge – On a standard user plan the rate you pay per unit of power is slightly lower for each unit of electricity you use. 

Find the best standard user power plan in NZ here


So hopefully you now fully understand the difference between low user plans and standard user plans on energy in NZ.  So with that info in mind… what are you waiting for?

Compare NZ Power providers now and find the best power company with Power Compare.

Other News

Oct 15, 2018

SPOTLIGHT: Energy Online

Check out our spotlight on Energy Online. They can help sort out your electricity, natural gas and LPG. Plus they keep it simple – with simple pricing, no contract and a $100 joining credit. What...

Oct 4, 2018

Top 10 ways to reduce your power bill this summer

Summer is coming! It’s finally time to turn off those heaters, shed those winter clothes and embrace the sun. As things heat up keeping cool can be expensive – here are our top tips to...

Sep 17, 2018

Meridian Energy ditches “unfair” prompt payment discounts

Meridian Energy announces it is ditching prompt payment discounts in favour of a guaranteed monthly discount for all customers from 1 October. 

Sep 12, 2018

Government Electricity Market Review – The results are in…

The results of a Government review have revealed there is a two-tier electricity market in NZ.  People who compare power plans and shop around and those that don't.  Don’t be one of the households that...

Sep 9, 2018

SPOTLIGHT: Genesis Energy

Check out our latest Spotlight Power Company Genesis Energy – New Zealand’s largest electricity and gas retailer.