Electricity: Are you a Standard or Low User?

When setting up your electricity account, you'll need to decide whether you are likely to be a standard or low user. The right choice depends on how much electricity you use annually.

Standard User

This is best suited for households that consume more than 8,000 kWh per year, or over 9,000 kWh annually in certain South Island regions. Larger families, usually with four or more people, tend to fit this category. This option features a higher daily fixed fee but offers a lower variable rate for each unit of electricity used. If your household uses a lot of power, having a lower variable charge can be more economical.

Low User

If your yearly electricity usage is below 8,000 kWh (or 9,000 kWh in some parts of the South Island), you may be a low user. This is usually more suitable for smaller households—typically one to three people. Having a low user tariff comes with a smaller daily fixed charge, though the per unit rate (variable charge) is higher. Lower usage households usually find this tariff more cost-effective, since they benefit from the reduced daily fee. However, if your usage exceeds 8,000 kWh in a year, this tariff may not offer savings.

Following a change to regulations, the low user tariff is being phased-out by energy retailers across NZ over a 5-year period until 1 April 2027.