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NEWS | Public Sector

New Zealand raises consumer care standards for utility companies as costs climb

by Cresta News Desk

published April 8, 2025

Source: eranz.org.nz

New Zealand is raising the bar for how power companies must treat their residential customers. The Electricity Authority’s Consumer Care Obligations now mandate clear communication, fair fees, and more robust support for people struggling to pay bills. This move comes at a time when lines charges and overall electricity costs are increasing, prompting concerns about affordability and highlighting the need for better consumer protections.

Power companies prepare: Power companies across New Zealand have been preparing for months, according to the Authority, and industry groups like the Electricity Retailers Association New Zealand (ERANZ) say they stand ready to comply. With these new standards, consumers facing financial hardship or those who rely on electricity for medical reasons gain stronger safeguards against disconnection.

Consistency in customer care: This shift builds on earlier steps toward consistent customer care. ERANZ members originally contributed to guidelines in 2008 and have worked toward improvements over the past decade. Now, for the first time, all New Zealand power companies must meet the same benchmark—offering practical advice on energy usage, helping tailor payment plans, and ensuring all communication is respectful and clear.

Relief amid rising costs: Most stakeholders anticipate these measures will bring notable relief at a time when cost pressures on households continue to rise. However, the new obligations also heighten the stakes for retailers: failing to abide by the standards could trigger action from the Electricity Authority’s newly enhanced monitoring system, or lead to consumer complaints through Utilities Disputes or the Disputes Tribunal.

Key points
  • New Zealand's Electricity Authority mandates new Consumer Care Obligations for power companies, focusing on clear communication and fair fees.

  • The new standards aim to protect consumers facing financial hardship or medical needs from disconnection, and require power companies to provide clear communication, fair fees, and support for financially struggling consumers.

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