Why Paying a Little Extra on Your Power Bill in Summer Can Save You From Winter Stress
For many of us, winter power bills hit like a freight train every year — even when we know they’re coming.
Heaters, hot water, cold damp homes, early sunsets… it all adds up. And with electricity prices rising sharply across Aotearoa, next winter is going to feel even harder for thousands of households.
But there is a simple (and surprisingly effective) strategy that can soften the blow:
Use summer’s lower bills to build up winter credit.
It doesn’t need to be huge. Even $5, $10 or $20 extra a week during summer can put you into winter with a buffer, one that protects your budget when things get tougher.
And given what’s happening with power prices right now, this kind of buffer can make a massive difference.
Why power bills are rising so quickly
Power bills in New Zealand have risen noticeably over the past year. For many households, this adds up to a high single-digit to low-double-digit percentage increase over just 12 months.
The recent increases
Stats NZ data shows residential electricity prices were about 11% higher in the year to the September 2025 quarter — one of the fastest annual rises in decades.
In April 2025 alone, regulated line charges increased significantly, and electricity prices began rising faster than overall inflation.
What this means in real dollars
According to Consumer NZ:
From 1 April 2025, the average household power bill will increase by about $10 per month (around $120 per year)
Some regions face increases of up to $25 more per month
That's roughly a 5–12% lift over that period
As a reference point, the average home using about 7000 kWh a year was paying around $197 per month in late 2023 — so an extra $10–$25 per month is a meaningful jump on top of already high bills.
Regional impacts: the lines companies
Network companies are a big driver of these increases.
For example:
Northpower estimates the cost of delivering electricity to an average household will rise about $12 per month (around 14.7%) from 1 April 2025.
Other networks have signalled 15–20%+ increases in their distribution charges.
These changes (including DPP4 regulated revenue shifts and the phase-out of low fixed charge regulations) mean many households — especially low-use and standard-use customers — will see higher fixed charges and peak-time costs, even if some off-peak rates fall.
Why summer is the smartest time to get ahead
Winter power bills hit harder because of usage, but also because of these rising fixed charges. And unlike usage, you can’t control fixed charges by “using less.”
That’s why putting yourself into credit over summer helps:
Your bills are already lower
You’re not heating the house
Hot water use and dryer use often drops
You can direct even a small amount towards building a buffer
If your household can spare even an extra $10–$20 a week from November–March, you can go into winter with $200–$400 of credit. That can be the difference between:
paying your winter bills smoothly
or feeling financially squeezed every July/August
For many women (especially solo mums), that predictability brings real peace of mind.
Steps to reduce your electricity bill (on top of building summer credit)
Here are the changes that get the biggest savings — without needing to invest in big upgrades.
1. Change your plan, not just your habits
Use Powerswitch or your power company’s tools to check if another plan is cheaper.
Many households can save hundreds per year just by switching retailers or plans.
Time-of-use plans or “free hour of power”-type deals can save more if you can shift laundry, dishwashing or EV charging to off-peak times.
2. Cut the “always on” loads
These often make up a surprising chunk of your bill.
Turning off things like:
heated towel rails
spare fridges/freezers
devices on standby
old entertainment units
…can reduce electricity use by around 8%, saving roughly $200 per year.
3. Smarter heating and hot water
Set heat pumps to 18–21°C (not mid-20s)
Use “heat” mode — not “auto”
Close curtains at night
Heat only the rooms you use
Keep showers shorter and your cylinder at sensible temperatures
These alone can shave tens of dollars a month off winter bills.
4. Tame the big appliances
Wash clothes in cold
Avoid using the dryer unless necessary
Run dishwashers and washing machines off-peak if your plan rewards it
Upgrade old fridges/freezers when you can — replacing the worst performer can cut its usage by 25% or more
5. A quick check that takes one week
Read your meter (or power app) daily for seven days while making one small change at a time.
You’ll see, in real time, what actually makes a difference in your home.
6. Ask for help early
If bills are already stressful, call your retailer. They are required to work with you on payment plans rather than letting arrears quietly build.
Energy hardship is real — and you’re not imagining it
Recent survey data shows energy hardship is widespread.
About 1 in 5 households (360,000–380,000 households) struggle to pay their monthly power bill
Around 300,000 households had overdue fees added in the last year because they couldn’t pay
Roughly 150,000 households needed to take out a loan just to cover power costs
Around 50,000 households had their power disconnected at least once in the past 12 months
MBIE estimates about 110,000 households couldn’t afford to keep their homes adequately warm
Newer research suggests 30% of households now experience some form of energy hardship
Low-income, Māori, Pacific and renting households are most affected — and rising fixed charges hit these groups even harder.
This context matters. You’re not failing. The system is simply expensive, and it’s getting more expensive.
So… what can you do today?
Not a full overhaul. Not a perfect system. Just one small shift:
Start paying a little extra on your power bill during summer.
Even a small top-up becomes a safety net.
Even a tiny buffer builds peace of mind.
Even $5 a week is $260 a year — and that could be the difference between a stressful winter and a manageable one.
Support future-you. She deserves a softer season!
