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These regulations were made under sections 172B, 172J and 172K of the Electricity Act.  They require retailers to offer domestic consumers low fixed charge tariff options of no more than 30c per day (excluding GST but after any prompt payment discount is subtracted).

These tariff options should incorporate the following design features:

• domestic consumers consuming less than 8,000kWh, per year must pay less on a low fixed charge tariff option than on any corresponding tariff option (from 1 April 2009, this increases to 9,000kWh per year for consumers in the lower South Island (Christchurch and below, excluding the West Coast);
• the low fixed charge tariff options are to be advertised in the same manner as existing tariffs;
• the retailer must inform domestic consumers at least annually whether it may be beneficial for them to switch to a low fixed charge tariff option;
• the low fixed charge tariff options need only be available for homes where consumers usually reside;
• all retailers should make the tariffs genuinely available (subject to usual credit-worthiness tests), irrespective of the usage and/or meter configuration of the consumer; and
• tariffs with tiers below 8,000kWh per year(for example, high c/kWh for the first 2,000kWh per annum) are proscribed in order to ensure that the lower fixed charge offers genuine advantages to small consumers.

The regulations also require distribution companies to offer low fixed charge distributor tariff options (to retailers or direct to consumers) at a maximum of 15 cents per day.

Amendments to the regulations were made in September 2008 and come into force on 1 April 2009. Further information on the amendments is available.

Compliance with the low fixed charge policy is measured both before and after any rebates or discounts.  Any rebates or discounts must apply consistently to consumers regardless of whether they are on a low fixed charge option or standard tariff option. 

The Electricity Commission is charged with monitoring and enforcing these regulations.

The regulations are available at the New Zealand Legislation website.