From today, power companies must discount off-peak power prices
Wednesday, 1 July 2026
Large electricity companies must now offer households and small businesses flexible 'time-of-use' pricing plans.
Power plans will typically be split into three daily periods: peak, off-peak (shoulder), and night rates.
Households exporting solar or battery power back to the grid during peak demand will receive higher financial returns.
Using power during off-peak times could come at a lower price or even free under new flexible daily rates.
The Electricity Authority is requiring large power companies to offer these 'time-of-use' pricing options to households and small businesses under new rules that came into force on July 1.
Energy Minister Simeon Brown said large power companies generated electricity for different prices throughout the day, but usually sold it to residential and small business consumers at a single flat rate, a practice he called unfair.
'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,' Brown said.
The pricing plans generally feature three distinct windows:
Peak: Prices are highest when demand peaks, typically from 7am to 10am and 5pm to 9pm.
Off-peak or shoulder: Prices decrease as demand drops off, typically from 10am to 5pm and 9pm to 11pm.
Night: Rates drop to their lowest when demand is at its lowest, typically between 11pm and 7am.
The framework also alters rates for customers with solar panels and batteries, making time-of-use pricing available for power exported back into the grid. This allows users who send power back to the system during peak times to be rewarded with higher financial returns.
The adjustment sits alongside recent changes that doubled household grid export limits from 5kW to 10kW.
Brown said introducing the plans was part of a wider rollout of government measures to provide consumers with more flexibility, though he acknowledged there was no single or overnight fix to deliver abundant, reliable, and affordable energy.
“Introducing time-of-use plans which can make power cheaper, or even free, during off-peak times, is one of those steps,” he said.
Consumers can evaluate whether a time-of-use structure aligns with their needs by contacting their provider or visiting billy.govt.nz, a free price comparison and switching tool run by the Electricity Authority that provides realistic savings estimates.