With the onset of winter and power bills expected to rise by $15 a month next year under proposed changes, the prospect of "free" electricity will spark joy for many households.
The Commerce Commission warned last month that New Zealanders can expect to pay more for their electricity from April 1, 2025 — due to population growth and an ageing electricity network.
Several electricity retailers now offer time-of-use power plans that encourage households to use power outside peak times — the incentive being that these plans make power either cheaper or free for a timeframe outside those peak times.
But how much of a difference can these plans actually make?
Paul Fuge, general manager of Powerswitch at Consumer NZ, said that some households may be able to reduce their electricity bills by as much as 20%.
"Free power plans are proving really popular with consumers because they enable them to save quite a lot of money," Fuge told Seven Sharp.
"But they're not for everybody — it depends on how much power you're prepared to move into those free periods. For some households, that's easier than others."
Switching to a power plan with lower prices across the board could be another option for some households.
Some households are just not able to shift their load into free hours," Fuge explained. "These are typically houses where there are small children, and they can't pick and choose when they use electricity.
"For those households, it's better to get an overall cheaper rate."
Fuge said what electrity retailers charge can vary considerably.
"People are always surprised by that," he said. "Around 30% of people think all retailers charge about the same, but that's simply not true — there's a considerable price difference."
Fuge said he saves around $600 a year by changing how he uses power.
"Not by using less [electricity], but by changing when I use electricity. I've shifted as much of my power consumption as I can into cheaper nighttime rates."
Watch the video above for more power-saving tips from Fuge.
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