New Zealand households have received over $4 million worth of credits towards their power bill through the Power Credits scheme, a sector-funded initiative that provides eligible households in hardship with support.
The scheme was introduced in 2022 to support low-income customers after the Government’s decision to phase out the Low Fixed Charge regulation. Funded by electricity retailers (ERGANZ members) and distributors (Electricity Networks Aotearoa members), it sees $5 million distributed in credits over a five-year period.
To be eligible, customers must be on a low-fixed charge (or have been in the past 6 months) and be showing signs of hardship. This would enable a customer to one $110 credit per year, or two $110 credits if professional financial mentoring has been received.
The scheme recently entered its fifth year, with over 36,000 credits being allocated to date.
ERGANZ Chief Executive Bridget Abernethy says the scheme can be helpful for those who need it most.
“Stats NZ data shows around 40% of households describe their income as either ‘not enough’ or ‘only just enough’, and many low-income households have to make tough spending decisions and trade-offs on essential costs such as housing, food, and utilities,” says Abernethy.
“A Power Credit can provide a much-needed boost for a household, no matter where you live. Data shows there is a strong correlation between where Power Credits are being allocated, and areas with high deprivation scores, meaning they are reaching areas with the greatest need.
“Participating retailers apply Power Credits directly to customers’ accounts, giving those receiving credits one less thing to worry about.
“The sector has a responsibility to support Kiwis who are struggling to pay their bills, alongside government. Retailers invest millions in consumer care initiatives that provide targeted assistance to customers facing energy hardship.”
Power Credits criteria and providers
Power Credits are allocated at the discretion of retailers and are available:
- To residential customers on the account for their primary residence.
- When households are experiencing energy hardship and are, or have been, on a low fixed charge in the last 6 months.
Up to a maximum of two credits per household can be received per 12-month period. A second power credit can only be issued if the customer has received professional budgeting advice. Participating retailers include:
- Contact
- Genesis
- Mercury
- Meridian
- Nova
- Subsidiary companies of the above
