Entrust welcomes “better plan” protection for NZ electricity consumers

3 March 2026

Across the Tasman, Australian power consumers benefit from rules that can save them hundreds of dollars a year if they’re on the wrong electricity plan. In New Zealand, no such consumer protections have been in place until now.

Entrust is pleased that this is about to change with the Electricity Authority announcing today that they will be putting in place rules that are similar to the Australian model, says Entrust Chair Denise Lee.

“New Zealand’s electricity market is built on competition but for competition to work, consumers need clear information. Right now, many don’t have it and they’re paying the price. 

“Electricity plans have become increasingly complex, so understanding if you’re on the right plan is also becoming increasingly difficult, and time consuming. Time-of-use pricing, conditional discounts, and short-term promotional offers, together with bundling of electricity, gas and broadband products means that it is hard for consumers to get a clear picture of what they’re paying for power.

“Entrust knows that consumers are less confident of being on the right plan, and that’s why Kiwi electricity consumers deserve the same protection as their Aussie counterparts, requiring power retailers to tell customers when there is a better option than their current plan,” says Ms Lee.

Across the Tasman, the Australian Energy Regulator requires electricity retailers to check whether customers are on their best available plan and notify them if savings are possible. Known as the Better Bills Guideline, the rule targets a simple but widespread problem - consumers are quietly overpaying because the system is too complex to navigate.

The Electricity Authority proposed similar “better plan” regulation last year. Entrust supported the proposals and is glad to see the Authority has decided to go ahead and adopt them, says Ms Lee. 

“It is good to see that opposition from electricity retailers who argued through their industry association that “better plan” proposals were likely to be confusing will not stand in the way of better protection for consumers.

“Retailers already hold detailed usage data for every household. They should know which customers could be paying less under a different plan because they use this same data for pricing strategy and customer retention. But they have not been required to share that insight.

“This is where the system has failed Kiwi consumers, compared to Australian model recognises a more practical reality - retailers already have the best data, so they should share it. 

“New Zealand power consumers need this regulation, and it can’t come a moment too soon,” said Ms Lee.

 

New Zealand’s electricity market:

  • Only about 6% of consumers switch retailer each year (source Electricity Authority)
  • The majority of people remain on the same plan year after year, even as pricing structures change and new plans are introduced
  • The average NZ household spends around $2,500 p.a. on electricity with independent research suggesting households can typically save between $400 and $500 by switching
  • Consumer confidence on being on the right plan has dropped from 74% in 2018 to 65% in 2025*
  • Only 7% of power consumers used Powerswitch to compare providers and change plans*
  • Nearly 50% of consumers know nothing about Powerswitch*

*Entrust research December 2025