Tips8 April 2026 Updated 9 Apr5 min read

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

A step-by-step guide to comparing and switching power companies in New Zealand using Powerswitch — the free government comparison tool.

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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.

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.

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.

Written by the Steady Team

Steady is a personal finance app built in New Zealand. We help Kiwis track spending, set savings goals, and understand their money — without spreadsheets or manual budgeting.Learn more about us