This opinion piece was published in the Newsroom on 16 April 2026.
View it here.
As power bills climb, many New Zealand households face tough choices this winter. But smarter pricing, better energy use, and reforms across the electricity system could help ease the pressure.
Higher power bills are stressing many New Zealand households. Families battling the cost-of-living crisis will face a difficult choice this winter – heating their homes or cutting other costs as they try to juggle household budgets.
Electricity affordability is a genuine challenge but the country and consumers do have options. New Zealand already has some of the building blocks of a fairer and more efficient system – if consumers, lines companies, retailers and regulators all play their part.
Many households are still on plans that no longer suit their usage. Tariff type, time-of-use pricing, and choice of retailer can make a material difference, but many people do not revisit their power plan once it’s set.
Independent comparison tools such as Powerswitch and Billy are designed to help, but they are probably underused; partly because energy plans can be complicated or confusing, and partly because many households have limited time or the inclination to keep reassessing them.
Shifting electricity use away from peak times – typically 7–9am and 5–9pm – is another practical step for households on plans that reward it. Dishwashers, washing machines, dryers, and EV chargers can often be run overnight without too much inconvenience.
Off-peak plans can reduce costs for some consumers and reduce pressure on the wider system. But the gains are not equal for everyone: households with inflexible routines, shared housing, young children or limited appliance choice may have much less room to shift demand.
Inside the home, hot water and heating are usually the biggest drivers of power bills, especially in winter when people use more power. In a country with cold, poorly insulated houses, small changes add up: shorter showers, efficient heat-pump settings, LED lighting, draught stopping, and better curtains.
These are more than just cost-saving measures. They also reduce dampness, improve comfort and health, and ease pressure on the grid during winter peaks. Advice on these choices is available through organisations like Consumer NZ and EECA.
For homeowners, solar panels and smart devices are no longer niche options. For some households, they can reduce grid demand and, in the right circumstances, create value by exporting surplus power at useful times. But these options remain out of reach for renters and lower-income households.
But household action only works if the system supports it.
What lines companies are changing
New Zealand’s lines companies, which I represent, play a key role in keeping electricity reliable and affordable. Their costs make up about 24.5 percent of power bills on average, and they face enormous pressure to invest as the country increasingly relies on electricity for transport, heating and industrial processes.
One of the most important reforms underway is the move toward pricing that better reflects when electricity is used, not just how much is used. Here’s the logic: if more demand can be shifted away from the busiest hours, some costly network upgrades can be deferred or reduced. That will not remove the need for investment, but it can help make the overall system cheaper than it would otherwise be.
Demand flexibility is another growing focus. Lines companies and retailers are trialling programmes that encourage households to reduce or shift demand at peak times. Instead of building infrastructure that is only needed for a few hours a year, lines companies can work with consumers to smooth demand – a cheaper outcome for everyone.
There is also a stronger focus on hardship and equity. Lines companies and retailers put $1 million a year into supporting households most at risk of energy hardship. And many lines companies work with community groups to provide insulation, energy-efficiency upgrades, and home advice, recognising that the cheapest kilowatt-hour is the one never used.
At the regulatory level, reforms are also reshaping how households participate in the energy system. New distribution pricing rules mean lines companies need to better reflect when electricity is used, not just how much is used. The new settings should increasingly reward households with solar and batteries for exporting electricity during peak periods, turning consumers into contributors.
A system New Zealand can afford
None of this denies the scale of the challenge. New Zealand’s lines companies must invest billions to maintain resilience, accommodate growth, and support decarbonisation. Those costs are real and they will not disappear.
But how those costs are managed matters.
If the system relies only on traditional infrastructure expansion, upward pressure on bills will remain intense. If flexibility, smarter pricing, better consumer information and more distributed participation are used well, that pressure can at least be moderated.
Electricity affordability is not just a matter for regulators or lines companies. It is also shaped by investment in new generation and wholesale prices. Affordability sits at the intersection of generation, retail competition, network design, regulation, housing quality and consumer behaviour.
There are at least signs that parts of the system are moving in a better direction. The task now is to accelerate that shift, explain the trade-offs honestly, and make sure the benefits are available not only to households with the ability to respond.
Because the future of electricity in New Zealand is not only about building more supply. It’s also about using the system more efficiently, sharing its costs more fairly, and being clearer with the public about what is possible, and what is not.