Glossary of Terms

Anytime power: Electricity that is available 24/7 for your lights and plugs. It is usually charged at a standard rate. (See also controlled power and uncontrolled power)

Billy: A free, independent tool provided by the Electricity Authority Te Mana Hiko. It lets you upload a bill or answer questions about your power usage to see if you could save money by switching power companies or plans.

Bill smoothing: A way to keep control of your budget. Your power company estimates your yearly power cost and lets you pay it in equal amounts every week or fortnight. So, instead of a 'bill shock' in winter, your payments are smoothed out over the year. (See also equalised billing)

Bundling: Putting multiple services like power, gas, mobile, or broadband, on one bill. While convenient, it’s always worth checking if you’re getting the best price for each individual service. 

Buy-back rate: If you have solar panels (or another source of energy generation or home battery), this is the amount your power company pays you for the extra electricity you don't use and send back to the grid. (See also price per kWh and export rate)

Community Services Card: A card for low-to-middle-income earners that helps ease financial costs with discounts on healthcare services, public transport, and some local leisure activities for eligible people. Cardholders may also qualify for energy subsidies or grants.

Consumer Care Obligations: These are the mandatory rules all New Zealand power companies must follow. They make sure you are treated fairly, kept informed, and supported if you’re finding it hard to pay your bills.

Consumer care policy: A document every power company must publish on their website. It explains exactly how they will support all customers, including during times of hardship or if you need power for health reasons.

Controlled power: The portion of your power that your network company can control by briefly turning off during busy 'peak' times, usually your hot-water cylinder. Because you’re helping manage the demand on their network, this is usually charged at a cheaper rate. (See also anytime power)

Daily fixed charge: A set daily fee you pay for being connected to the power grid - no matter how much electricity you actually use. It  covers the cost of maintaining essential infrastructure. (See also price per kWh)

Distributor: The company that owns the physical poles and wires in your area. They are responsible for fixing faults and maintaining the local network. (See also retailer and lines company)

Electricity assistance loan: A one-off payment from Work and Income to help with urgent power bills or reconnections. This is usually a 'recoverable' payment, which means you may need to pay back over time.

Electricity Authority Te Mana Hiko: The Electricity Authority is an independent Crown entity responsible for regulating New Zealand's electricity industry, for the long-term benefit of consumers.

EECA: Energy Efficiency and Conservation Authority (Te Tari Tiaki Pūngao, a New Zealand Crown entity dedicated to promoting energy efficiency, conservation, and the use of renewable energy. 

Energy hardship: When a household struggles to afford enough electricity to keep their home at a warm and healthy temperature (at least 18°C as recommended by the World Health Organization).

EnergyMate: A free coaching service designed to help families reduce their power bills and create warmer, drier homes by providing practical energy-saving tips and support to better understand electricity usage.

Equalised billing: See bill smoothing.

Exit fee: A charge you might have to pay if you want to leave a fixed-term contract before it has finished. (See also termination fee)

Export rate: See buy-back rate.

Fixed-rate plan: A plan where the price you pay for each unit of power stays the same for a set time, protecting you from power price changes in the market. GST and government levies may be charged. (See also variable rate)

Generation: Power companies produce electricity using water (hydro), wind, geothermal, solar, biomass, or gas and send it back to the grid for use. 

Good Shepherd NZ: A charity that offers no-interest, fee-free loans for energy costs and other essentials, alongside financial wellbeing support.

Green home loan: Special low-interest or interest-free loans from banks (often as a mortgage top-up) to help you pay for solar panels, home batteries, or heat pumps.

Home battery: A storage unit that saves your daytime solar power so you can use it at night, or at a later stage, helping you become more self-sufficient.

ICP number: Installation Control Point is your home’s unique 15-character 'ID connection number'. You can find it on the front page of your power bill, and you'll need it if you decide to switch companies. 

Inverter: A piece of solar hardware that converts the raw energy from your panels into the type of electricity your home appliances use.

Kilowatt-hour (kWh): The standard unit of energy measurement. Your bill is based on how many 'units' (kWh) of power you use per hour.

Lines company: See distributor.

Low-user plan: A plan type with lower daily fees but higher unit prices. Best for households using less than 8,000 kWh per year in the North Island or 9,000 kWh in the lower South Island. (See also standard-user plan)

Medically dependent consumer: Someone who relies on power for critical medical support. If you register as a medically dependent consumer, your power company has extra rules they must follow to make sure you aren't disconnected.

MoneyTalks: A free, confidential helpline that provides professional budgeting advice and financial mentoring.

Night rates: See off-peak rates.

Off-peak rates: Cheaper prices for power used during times when demand is low (usually between 11am and 5pm and 9pm to 7am). (See also peak rates and night rates)

Pay-as-you-go: See prepay.

Peak rates: Higher prices for power used when the national grid is busiest (usually breakfast and dinner times). (See also off-peak rates)

Post-pay: Where you use electricity throughout the month and receive a bill afterward. (See also prepay and standard plan)

Power Credits Scheme: Financial help for those who were on old 'low-user' plans. It helps ease the transition as these plans are phased out across the country.

Prepay: A way to pay for power in advance, similar to a mobile phone top-up. The power stops if the balance hits zero. (See also post-pay and pay-as-you-go)

Price per kWh: What you pay for each unit of power you actually use, which is measured as per kilowatt hour. (See also daily fixed charge and variable charge)

Retailer: The company you choose to buy your power from, and who sends you your bill. (See also distributor, power company or power companies)

Smart meter: A digital meter that tracks your power use in real-time and sends that information directly to your power company. (See also standard meter)

Standard meter: An older-style meter that must be read manually by a technician. It does not support Time-of-Use plans. (See also smart meter)

Standard plan: See post-pay.

Standard-user plan: A plan type with higher daily fees but lower unit prices. Best for larger households or EV owners. (See also low-user plan)

SuperGold Card: A discount and concession card for New Zealanders aged 65+. The Combo Card version includes Community Service Card benefits.

Termination fee: See exit fee.

The National Grid (owned and operated by Transpower): The 'national motorway' of high-voltage lines that moves electricity from power stations across the country to your local region.

Time-of-use: Time-of-use plans charge you more for power during busy "peak" times and less during quieter “off-peak” hours, allowing you to lower your bill by  running appliances when demand is low.

Uncontrolled power: See anytime power.

Utilities Disputes (UDL): A free and independent service that helps resolve complaints between you and your power company.

Variable rate: A rate that can go up or down depending on market conditions. (See also fixed-rate plan)

Warmer Kiwi Homes: A government programme, managed by EECA, providing grants for insulation and efficient heating (like heat pumps) to eligible homeowners.

Winter Energy Payment: An automatic payment for seniors and people on benefits to help with heating costs from May to September.