New Zealand requires major power retailers to offer off-peak pricing from July 2026

What is the background?

Smart meters record electricity use in intervals throughout the day rather than a single monthly total, which only becomes useful to households if their power plan actually charges different rates at different times. Smart meter electricity pricing New Zealand reform connects that existing hardware to pricing structures that reward off-peak use.

What happened?

New Zealand has installed 1.25 million smart meters at residential electricity connections, meaning seven out of ten households now have one. The Electricity Authority has now required large retailers — defined as those with 5% or more market share, currently Contact, Meridian, Mercury, and Genesis — to offer a time-of-use or off-peak pricing plan, expected to be available to most New Zealanders from 1 July 2026, with full compliance required by 30 October 2026.

From 1 July 2026, the same large retailers must also pay fair rates for power exported at peak times, specifically to reward households with small-scale solar and batteries who feed electricity back into the grid.

How did it happen?

Smart meters had already reached 70% household coverage before this pricing requirement, meaning most of the technical infrastructure needed for time-of-use billing was already in place — the reform closes the gap between having the metering hardware and actually offering pricing plans that use its data. Lines companies are separately trialling smart EV charging to manage peak demand and upgrading equipment to better handle rooftop solar and battery exports.

Requiring fair export rates alongside time-of-use pricing addresses both sides of the incentive: households can save by shifting consumption to cheaper off-peak hours, and households with solar or batteries get properly compensated for power they contribute back to the grid at high-demand times.

Why does it matter?

Nearly half of households surveyed believe there isn’t much more they can do to cut their power bills without investing in new technology — a time-of-use plan changes that by rewarding a genuinely free behaviour change (shifting when you use power) rather than requiring new purchases. For households that have already invested in solar or batteries, fair peak export rates make that investment pay off faster.

Mandating the offer, rather than leaving it voluntary, ensures the smart meters already installed in most homes actually translate into a real pricing option, rather than sitting unused as billing infrastructure that never changes what customers pay.

What were the key results?

• 1.25 million smart meters installed at NZ residential connections — 7 in 10 households
• Large retailers (Contact, Meridian, Mercury, Genesis) must offer time-of-use or off-peak pricing
• Plans expected available to most New Zealanders from 1 July 2026
• Full retailer compliance required by 30 October 2026
• Fair peak-time export rates for solar and battery households also required from 1 July 2026
• Lines companies trialling smart EV charging to manage peak demand
• Nearly half of households report feeling unable to cut bills without new technology investment