Nearly 47,000 electricity connection requests refused last year
Wednesday, 1 July 2026
Power companies refused 46,895 requests for post-paid electricity connections last year because of people’s poor credit ratings, the Electricity Authority has revealed.
The authority requires power companies to only disconnect existing customers “as a last resort”.
But the Wellington operations manager of the Citizens Advice Bureau, Juliane Tandy, said earlier this month that a common issue it dealt with was power companies refusing standard connections to new customers, forcing them to seek pre-pay plans from those retailers that offered them.
Pre-pay plans mean customers essentially cut themselves off from receiving power if they run out of credit and don’t have the money to pay up-front.
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The Electricity Authority appears to have recognised an issue.
It said on Wednesday it wanted to hear from people about “their experiences accessing electricity or finding a plan that works for them”.
“Most people have access to electricity and can choose from a range of power companies and plans,” its consumer manager Andrew Millar said.
“But we understand it isn’t always easy for some people with credit-related issues or older-style electricity meters.”
Millar said the authority wanted to make sure the electricity system worked for everyone and the consultations would help the authority work out what improvements were needed to give people “better access and more choices”.
“Every household relies on electricity every day. Some consumers can get access to pre-pay options, but that might not suit everyone.
“We also know some households may have meters that limit access to newer products and services, including time-of-use pricing and prepay options that could help people better manage their costs,” he said.
“Credit and metering issues can also overlap, leaving some people with few practical choices to access power.”
Bridget Abernethy, chief executive of the Electricity Retailers' and Generators' Association (Erganz), noted the 46,895 connection requests that were declined could have involved multiple requests from individuals to different retailers, so the number of households who had been declined standard connections might be lower than that.
“We welcome the Electricity Authority’s focus on improving consumer access and choice. Strengthening protections for vulnerable consumers and ensuring all consumers can access electricity, while being protected from financial hardship, is a shared priority for Erganz members,” she said.
But she suggested power companies might be helping some people by refusing them post-paid connections.
“Credit checks help reduce the risk of customers being placed on plans they may struggle to afford, which can lead to debt and arrears,” she said.
“We will encourage the EA to ensure the responsibility for supporting vulnerable consumers is shared by all retailers, including appropriate support and tools to help manage debt.”