If you use under 8000 kWh/year in the North Island, or 9000kWh/year in the South Island, you may be better off on a low user plan. If you use over 30% of your power from 9pm-7am, you may be better off on a day/night plan, with higher day rates in exchange for up to half price power at night. Contact us to switch plans.

A low user is any electricity customer who uses a relatively small amount of power. In the North Island, you are considered a low user if you use less than 8,000 kWh annually at your primary residence, while in Canterbury you are a low user if you less than 9,000 kWh per year. Low user electricity plans have a lower daily charge and a higher variable usage charge. This means if your household does not consume a lot of electricity, you may be able to save a significant amount of money on your power bill over the course of a year.

The government is phasing out Low User regulations over a period of five years. The Low User Regulations set a cap on what electricity retailers can charge low users for their daily fixed charge. On 1 April 2025, the cap on the Low User daily charge increased from $1.38 /day to $1.725 /day (incl. GST, which is an increase of about $2.50 per week). The cap will continue to rise by 30 cents/day each year until 2027, when the Low User regulations will be removed. There is no requirement that retailers stop offering low user plans (with lower daily charges). But it is expected that phasing-out the regulations will likely see retailers increase their low fixed charge gradually over five years until it is about the same as the standard fixed charge. Generally, customers on a low user plan should also see their variable rates become more aligned to standard user variable rates during this time. The main reason we expect retailers to phase out low user charges is that the lines companies are also phasing out their low user charges – and they pass these costs onto retailers. So it may be financially challenging for retailers to continue to offer both a standard and low user option.

Powerswitch is an independent energy plan comparison website that can help you decide which power company is right for you.