For many businesses, gas has long been a reliable part of daily operations. But supply in New Zealand is tightening, and prices are becoming harder to predict.
Talking to your retailer could help you secure a better deal and reduce your gas costs. This guide is for North Island businesses that use reticulated (piped) natural gas.
Types of meters
Gas meters come in two main types, and your type affects the contracts available to you:
- Time of use meter
- Common for larger commercial and industrial users
- Suits fixed-term, fixed-price contracts
- Non-time of use meter
- Common for SMEs like restaurants, cafes, and small manufacturers
- Often default pricing (higher than contract rates)
The benefits of a contract
- Lower cost — Contract prices are generally cheaper than default rates. How much depends on supplier and usage, but the savings can be significant.
- Certainty — Fixed-term, fixed-price contracts give more predictability in a volatile gas market.
What steps can you take?
1. Check if you’re already on a contract
- Contact your supplier and ask. Some businesses are on default rates without realising it.
2. Ask about contract options
- Larger businesses (typically spending over $1.5 million per year on energy) may be offered contracts of 4-5 years.
- Smaller businesses may only be offered 12-month contracts. Even so, this can still give cost savings and certainty compared to default pricing.
3. Questions to ask your retailer
When you call your retailer, have this checklist in front of you:
- Am I currently on a gas contract, or on default pricing?
- What contract options are available for my business?
- Are there different tariff rates for different contracts? What might that mean for my energy use?
- How long is the contract term?
- Are there any extra fees (i.e. daily charges)?
- What happens if my usage goes up or down?
- If you can’t offer me a contract, what other support can you offer? This could include energy assessment options, and even help with energy transition.
4. What if your supplier says no?
If your current supplier can’t offer a contract, it’s worth exploring other options — particularly for smaller businesses, where multiple retailers may be available. So make sure to shop around.
Even if contracts aren’t available, this is a good opportunity to start planning for alternative energy solutions. On our support for gas users page, you can find practical advice.