Off-peak pricing to make power more affordable

New rules come into force today requiring the large power companies to provide customers with power plans that reflect the different costs of electricity throughout the day, giving customers more choice and helping to make power bills more affordable, Energy Minister Simeon Brown says.

“The big power companies generate power for different prices at different times of the day, but those same companies usually sell that power to residential and small business customers at one price, regardless of when they use the power. 

“That is unfair and, from today, the Electricity Authority is requiring the big power companies to offer ‘time-of-use’ pricing plans to households and small businesses. 

“This will give more people the option of shifting some of their power usage to take advantage of cheaper rates where possible, making their power bills lower than they otherwise would have been.

Time-of-use plans usually have three price periods:

Peak - Prices are highest when demand for electricity is highest, typically 7am to 10am and 5pm to 9pm.
Off-peak or shoulder - These are the periods following peak periods when demand starts dropping off. Typically, they’re:10am to 5pm and 9pm to 11pm.
Night - Prices are lowest when demand is lowest. Typically: 11pm to 7am. 

“The new rules will also support those with solar and batteries by making time-of-use pricing available for electricity exported back into the system, which can better reward those able to do so.

“This means customers who export power back to the grid during peak times can be rewarded with higher returns for doing so. 

“Together, these changes will not only support more affordable power bills but also make the uptake of solar and batteries more attractive. This sits alongside recent changes doubling the export limits for households exporting power back to the grid from 5kW to 10kW. 

“This is one more action in the Government’s plan for abundant, affordable and reliable energy for all New Zealanders. 

“There is no single or overnight fix to achieve this, but there are a number of measures the Government is rolling out to give consumers more control and flexibility over their power usage and bills.

“Introducing time-of-use plans which can make power cheaper, or even free, during off-peak times, is one of those steps.

“To see whether a time-of-use plan suits your needs, check with your power company or visit billy.govt.nz - the Electricity Authority’s free price comparison and switching tool. You can check whether you are on the best deal and find realistic estimates on savings.” ...