Energy Minister Simon Watts is welcoming an extension to the industry funded Power Credit Scheme which is supporting lower income Kiwis with the costs of power.

The Scheme supports those who are struggling to pay their energy bills and are affected by the phase-out of a low fixed electricity charge by offering them a $110 power credit from their providers.

“Extending the Scheme will help alleviate the financial burden on households by providing them financial relief in the face of rising costs,” Watts said.

“It has been a challenging time for many Kiwis, with cost-of-living pressures making it difficult for households to budget for everyday necessities including food, rent, and power. That’s why this Government is working hard to grow the economy to reduce the cost of living and help Kiwi households get ahead.

“Things won’t change overnight but our plan to support Kiwis is working," Watts said.

"We have gotten inflation under control, delivered tax relief which has put more money back into Kiwis pockets, and supported families with childcare payments through FamilyBoost.

“Recent increases in power prices are likely to put further pressure on household budgets. That’s why I have worked with larger electricity retailers and lines companies to secure a five-year industry funded extension to the Power Credit Scheme, through to 2032.

“I acknowledge the large retailers and lines companies for providing the scheme as the Regulations are phased out and afterwards.

“I encourage anyone coming off a low fixed charge plan to check with their power company to see if they are eligible for a power credit,” Watts said.

Key points:

Power credits are only for customers at their main residence.

Customers can get a $110 power credit from their electricity providers if they:

• are finding it hard to pay their electricity bill
• have been on a low-use electricity plan within the last 6 months, and
• have had a recent price rise.

Customers who have had professional budgeting advice may be eligible for a second power credit in the same 12-month period.

Customers can get up to two credits in a 12-month period.

The LFC phase out will conclude in April 2027. The Power Credits Scheme will continue until 2032.

MBIE released the Mid-Point Review of the Phase-out of the Low Fixed Charge (LFC) Regulations, which can be read on the MBIE website here: https://www.mbie.govt.nz/building-and-energy/energy-and-natural-resources/energy-consultations-and-reviews/electricity-price/phasing-out-low-fixed-charge-tariff-regulations