This is a common question for Kiwis—and an important one, too. Choosing the right electricity plan (Low or Standard User) can help you avoid overpaying on your power bills. Don’t be misled: just because a Low User plan sounds cheaper doesn’t mean it is the best fit for everyone. If your household uses more power, you’ll likely save more on a Standard User plan.
Your ideal plan depends on a few key factors—how many people live in your home, the appliances you use, how you cook, and how you heat your space. Here’s how to figure out which category you fall into.
What’s the Difference?
Low User Plans
You’re considered a Low User if your household uses:
- Less than 8,000 kWh/year (North Island and upper South Island)
- Less than 9,000 kWh/year (lower South Island due to colder climates)
Low User plans work best for:
- Small households (1–2 people)
- Well-insulated, energy-efficient homes
- Power bills under $160–$180/month
These plans come with:
- Lower daily fixed charges
- Higher per-unit (kWh) charges
Standard User Plans
You’re a Standard User if your household uses:
- More than 8,000 kWh/year (North Island and upper South Island)
- More than 9,000 kWh/year (lower South Island)
Standard plans are ideal for:
- Larger households or families
- Smaller households with high usage (spa pools, heating, underfloor heating etc)
- Homes with high energy needs
- Power bills over $180/month
These plans have:
- Higher daily fixed charges
- Lower per-unit (kWh) charges
Why It Matters!
Being on the wrong plan can cost you more over time. We don’t need that with the cost of living on the rise! So take the time to have a look at your power bill and ask, am I on the right plan, am I with the right provider? It takes just a quick check but it can help you save money.
A Few More Tips
- It is possible to be a low user in Summer and become a standard user in Winter with longer hot showers and heating on. If this is you – chat to your power provider and see if they’ll allow you to switch user types 1x a year to save money.
- All power retailers in NZ are required to offer Low User plans for your main home—but this option is being phased out, so make sure you’re using it while it’s still available.
- Some energy providers will automatically review your usage and switch your plan if needed, but not all do. It’s worth checking your usage yearly and doing a quick “power plan health check” . If in doubt – ask your retailer what they do.
Simply put! If you’re using less power, a Low User plan could save you money. If you’re using more, a Standard plan is the smarter choice. Take a look at your most recent 2-3 power bills to check your annual usage and make sure you’re on the plan that suits your household.