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Low User Fixed Charge Phase Out

Why is the Low User Daily Fixed Charge Increasing?

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Written by Richard
Updated today

What’s happening to the Low User Daily Charge?

The Government’s review of the electricity industry found the old Low User plans weren’t as fair as they could be. So, they’ve decided to phase out the Low User Daily Charge for all energy retailers — not just us.


The charge will increase a little each year until it’s completely gone in 2027.

If you’re keen to dig into the official details, you can read more about it on the Ministry of Business, Innovation & Employment website here.


Why is the Low User Daily Fixed Charge increasing?

It’s part of the Government’s plan to make power pricing fairer for everyone. The gradual increase helps smooth out the change, giving customers time to adjust while keeping bills transparent and simple.


Why are the Low and Standard User Plan rates the same for my address?

As the Low User Daily Charge is being phased out, the difference between Low and Standard User plan rates has narrowed — in some places, they’re now almost identical.


To keep things simple, we’ve merged them into a single residential plan.


That means no more switching or second-guessing — you’ll always be on the best rate for your usage each month.

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