MBIE Energy Use newsletter – April 2025

15 April 2025

Applications for the next Support for Energy Education in Communities funding round are now open

Does your organisation provide in-home interventions and support to households in energy hardship? Funding applications are now open for the Support for Energy Education in Communities (SEEC) programme.

This Request for Proposal (RFP) will offer grants to up to seven providers, to deliver at least 800 unique in-home energy interventions and support services each.

Providers will use the funding to support households in energy hardship to achieve warmer, more energy-efficient homes, and lower their power bills.

Applications close at 12pm on Thursday, 8 May 2025. Learn more about SEEC and apply for funding on EECA’s website.

Support for Energy Education in Communities (SEEC) Round 5 - EECA

For any queries, please contact SEEC@eeca.govt.nz 

Mid-point review of the Low Fixed Charge (LFC) Regulations and extension of the Power Credits Scheme

On 9 April, the Minister for Energy, Hon Simon Watts welcomed the extension of the industry funded Power Credits Scheme for an additional five years, out to 2032. The scheme will be extended by $1 million per year, adjusted for inflation. 

You can read Minister Watt’s Press Release here: 
Supporting Kiwis with the costs of power - Beehive.govt.nz

The Minister also released the Mid-point Review of the phase out of the LFC regulations and the Sense Partners analysis report. 

You can read the reports here: 
Mid-point review of the phase-out of the Low Fixed Charge (LFC) Regulations

Key findings from the review include that:

• there have been winners and losers but overall, the phase-out is reversing a cross-subsidy
• wider factors, such as wholesale price increases or changes in network costs, are having a more significant impact on electricity bills than the phase-out
• fixed charges have not increased to the maximum allowed under the phase-out
• pricing innovation is starting but will not fully take off until the phase-out is complete.

There are a number of problems with the LFC Regulations

• The Regulations introduced a cross-subsidy. As a result, low electricity users with the highest incomes were having their electricity use subsidised, including by low-income households. The cross-subsidy made bills cheaper for low-users by increasing bills for standard users.
• The Regulations inhibited innovation. Due to the strict requirements imposed, industry felt unable to introduce more innovative pricing, which could benefit households.

However, retailers have not increased fixed charges across the board. The average fixed charge for low users is 91 cents, which is lower than the 120-cent maximum allowed.

Extension of the Power Credits Scheme

The Power Credits Scheme is a $5 million industry fund that opened in June 2022 and will run to 2027. Industry has agreed to provide additional support of a further $1 million a year, adjusted for inflation, through to 2032 when more innovative pricing plans become available. 

The scheme supports low electricity-use households who are finding it hard to pay their power bills as the Low Fixed Charge Tariff regulations are phased out.

Anyone struggling with their power bills, or who has questions about their pricing plan, is encouraged to contact their power company in the first instance.

Contact us

We welcome any thoughts or questions about this area of work, and any interest you might have to be involved. For further information, please contact the MBIE Energy Use team by emailing energyuse@mbie.govt.nz

This update is brought to you by the Energy Markets branch, part of the Ministry of Business, Innovation and Employment.