What’s in Your Power Bill?


Even though your power bill includes a ton of information, understanding it can be a whole other matter! Not only does your bill include how much power you have used, but it also includes how much you need to pay and more importantly, explains where that fee goes. Understanding your bill will give you a better idea of what your hard-earned money is going towards each time you apply a payment!

Fixed Versus Variable Charges

Most power bills will include two different costs: fixed and variable. A fixed rate is charged on each bill and does not depend on how much power is used. On the other hand, variable charges encompass the amount of power you do use. This charge is based on the kilowatt hours consumed and is charged at the rate you've set up with your retailer.

Electricity Authority Levy...Explained!

Also included on your bill is an "Electrical Authority Levy" charge, which is normally based on the amount of power utilized. This charge covers the cost of the Electric Authority, which regulates the power industry.

Breaking Down Each Dollar on Your Bill

You work hard for your money, so you deserve to know exactly what your money goes toward each time you pay your power bill. Every dollar on your bill is used wisely; see below to learn more about where each dollar of your bill goes:

  • Power generation, or making electricity, accounts for over 30%
  • Almost 10% goes towards covering the cost of building and maintaining the national grid
  • Building and maintaining the power lines that transport electricity from the national grid to your house accounts for just over 26%
  • The retailers’ operating costs (whom you purchased electricity from) account for approximately 16%
  • 13% covers the goods and services tax
  • Slightly over 3% covers the cost of reading and maintaining electricity meters
  • Just under 1% covers market governance and market services. The market governance fee provides energy efficient programs, as well as cost coverage for running organisations that regulate the electricity industry. Market services money goes towards covering the operating costs of the organisations that manage the day-to-day management of the power market.

Try Switchme's Free Comparison Calculator!

Now that you understand more about your power bill, are you wondering how you can save money on each bill? If so, Switchme can help!

We at Switchme work hard to let you know if there is a more economical solution available for providing your power! Contact us today to learn more details and to utilize our free comparison calculator to compare power companies.

Mighty River Power Profits Flat As Spending To Keep Customers Rises


Mighty River Power says its costs rose $7 million in the second half of 2015 as it battled to keep customers amid "intense" competition.

The Auckland-based power company, which is 51 per cent owned by the Government, reported earnings before income tax, depreciation, amortisation, change in fair value of financial instruments (EBITDAF) of $257 million for the six months to December 31, $1m lower than the same period a year earlier.

While production from its hydroelectricity stations in the Waikato River were up on the second half of 2014, the company said wholesale prices were slightly lower and the company increased spending on customer offers.

Chairwoman Joan Withers said Mighty River Power has seen "intense competition and intense pricing pressure both leading up to and within the period" being reported on Tuesday.

Mighty River Power owns the Mercury retail brand. Its products include the Globug, a prepaid electricity plan.

Chief executive Fraser Whineray said the intensity of competition pushed up its operating costs by $7m in the first six months of the financial year, however the company believed the second half spending would be lower, with operational spending roughly the same as in the year to June 30, 2015.

Source Stuff.co.nz