PHASING-OUT LOW FIXED CHARGE TARIFF REGULATIONS.
Beginning 1 April 2022, the Government, with support from the electricity sector, are phasing out the low fixed charge over 5 years.
I’m a low user, what does this mean for me?
Your low fixed charge will increase gradually over 5 years. Each year, the maximum low fixed charge will increase by 30 cents after the deduction of Prompt Payment Discount.
Why is this change happening?
The Electricity Price Review found that the low fixed charge is unfair to larger, low-income families living in poorly insulated homes, as they cannot keep their power consumption low enough to benefit from it. On the other hand, the low fixed charge was found to disproportionately benefit families who live in well insulated homes with modern technology that don’t require as much power to heat. Removing the low fixed charge will create fairer electricity prices for all New Zealand households.
While all New Zealanders are expected to benefit in the long term from the regulations being removed, some households may face higher power bills. If this is you, or someone you know, we have a range of tools to support you.
Click here to find out more about why this change is happening.