A cream hot-water cylinder, a heat-pump remote and a round thermostat dial against a pale mint wall

Cut Your Winter Power Bill in NZ: 3 Settings That Cost the Most

Byadmin

New Zealand winter power bills can be double the summer ones, and most of the difference comes from three settings you can change in an afternoon. Here is how to lower your electricity bill before the cold months arrive.

1. Hot water is about a third of your power bill

Heating water is typically 30 to 40 percent of a household’s electricity use. Two fixes make the biggest difference:

  • Check the cylinder thermostat. 60°C is the safe minimum to prevent Legionella; anything above that is wasted energy. Many cylinders leave the factory set at 65 to 70°C.
  • Wrap the cylinder and pipes. A cylinder wrap and pipe lagging cost under $100 and pay for themselves within a year on an older cylinder.

If your plan has a cheap night rate, a timer that heats water overnight cuts the cost further. Our power plan comparison shows which retailers offer off-peak pricing for your usage.

2. Heat pump settings: two defaults that waste money

A heat pump is the cheapest way to heat a room, but two factory defaults undo that:

  • Do not use Auto mode. Auto flips between heating and cooling and can run the compressor far more than needed. Set it to Heat.
  • Set 20 to 21°C and leave it. Turning it up to 28 does not heat the room faster; it overshoots and wastes power. Use the timer so it starts 30 minutes before you get up.

Clean the filters monthly through winter. A clogged filter can add 10 to 15 percent to running costs.

3. The low-user plan trap

Low-user plans have a very low daily charge and a higher rate per unit. They suit households using under about 8,000 kWh a year (9,000 in the lower South Island). Above that, a standard plan is cheaper, often by a few hundred dollars a year.

The trap: people choose low-user in summer when usage is low, then pay the high unit rate all winter. Use your annual kWh, not last month’s bill. Enter it in our electricity comparison and it will show the cheapest plan for your real usage, with a typical winter month and summer month.

Before you switch power companies

Switching retailer takes about five working days and your power is never cut off. Check whether your current retailer charges a break fee (most fixed-term plans do) and whether the new one offers a sign-up credit that covers it.

Frequently asked questions

What is the average power bill in NZ in winter?

For a three to four person home using about 7,000 kWh a year, a winter month is typically 35 percent above the monthly average and a summer month about 25 percent below. Our comparison shows both for your usage.

Is it worth switching power companies for a credit?

Only if the ongoing plan is competitive. A $150 credit on an expensive plan is gone within a few months.

Usage figures are typical ranges from NZ household studies. Your home may differ.