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Money
Winter bill shock: How to claw back money when the damage is done
Don't let winter energy bills overwhelm you. Discover payment plans, hardship programs, government assistance and practical strategies to manage shocking energy costs and get back on track.
By Carolyn Tate
Winter is a time to stay inside and try to keep warm. We might bake more, take longer and hotter showers and dial up the heating to warm our bones. For many of us, this can mean inadvertently racking up big bills – with the hike in power costs over recent years sending energy costs skyrocketing.
Getting a huge bill can be stressful, but there are practical options that can help ease the burden – and many are more accessible than you might imagine.
Quick relief options
Payment plans
If you receive an unmanageable bill, your first port of call should be your energy provider, says Marshida Kolthoff.
"Contact your energy provider straight away – they're required to offer support like payment plans or hardship programs," Marsida says.
Most energy companies offer flexible arrangements that allow you to spread your payments across several months without incurring interest. If you’re proactive and honest about your financial situation, your provider is more likely to work with you, says Marshida.
"Start by calling your provider and explaining your situation,” she suggests. “Have your bill and account number handy and be ready to talk about your income and expenses. Ask about their hardship program – providers are obligated to work with you to find a solution that's fair and manageable."
Hardship programs
Major energy suppliers in New Zealand operate a hardship program designed to help customers experiencing financial difficulty. These programs can include payment holidays, debt relief, emergency credit and even bill reductions in some circumstances.
Eligibility criteria vary between providers, but you don't need to be in severe financial distress to qualify. Many programs consider factors like unexpected expenses, reduced income, or simply the inability to pay your current bill without causing financial hardship.
The application process is usually straightforward, involving a phone call or online form where you'll discuss your situation with a specialist team member. These conversations are confidential, and the staff are trained to find solutions rather than create barriers.
Government assistance
Government support for energy costs also goes further than what you might expect and has available through schemes including:
- Winter Energy Payment (automatic for eligible people receiving NZ Super or benefits)
- Temporary Additional Support and Special Needs Grants through Work and Income
- Home insulation and heating subsidies through Warmer Kiwi Homes
Many local councils also provide rates rebates or emergency assistance for households struggling with essential costs.
More savings: 11 impressive things you might not know your SuperGold Card can do
In colder regions, additional insulation or heating subsidies may be available through local councils or community trusts. Local councils also have emergency funds that can help with essential expenses, including energy bills.
Smart money management
If you regularly come up against bills that are hard to manage, it can also be helpful to spread your annual energy costs evenly across 12 months, eliminating the shock of seasonal peaks. This approach can help you to budget more effectively and avoid the feast-or-famine cycle of energy expenses.
You can also find some quick savings with some energy efficiency measures that will save you on your next bill. Closing curtains at dusk helps to retain heat, and using draught stoppers and heating only occupied rooms can reduce energy consumption by 10-20 per cent.
More tips here: 16 things you can do right now to save big on your energy bill
You can also start building an emergency fund specifically for utilities – even $10-20 per month during warmer periods creates a buffer for winter spikes. This forward planning can transform bill shock from a crisis into a manageable expense.
Recognising warning signs
"If you're cutting back on heating, skipping meals to pay bills or receiving overdue notices, it's time to reach out,” says Marshida. “These are signs the situation is becoming unmanageable, and support is available long before disconnection happens. The earlier you act, the more options you'll have."
Other warning signs it might be time to reach out for help include borrowing money to pay energy bills, avoiding opening mail from your energy provider, or feeling anxious every time you use heating or cooling, says Marshida.
"Similarly, those receiving a government support payment are typically eligible for some form of additional concession on their energy costs – if you're unsure as to whether this has been applied, reach out to your energy provider to confirm your eligibility and its application."
Taking action now
Don't let pride or embarrassment prevent you from seeking help, suggests Marshida. "One of the biggest pitfalls is waiting too long to ask for help,” she says. “Another is not knowing what support is actually available – people often think they won't be eligible for help, but in many cases, they are. Getting the right advice early can prevent things from spiralling."
If you would like help with managing your winter bill shock, contact your energy provider to discuss payment options. You can also call MoneyTalks on 0800 345 123 or visit MoneyTalks for free financial mentoring and debt support.
In New Zealand, Age Concern New Zealand offers specialist advice and advocacy for older Kiwis navigating energy assistance options. Call 0800 65 2 105 or visit Age Concern.
Research your eligibility for Winter Energy Payment, Special Needs Grants, and other emergency support through Work and Income. You can also contact local community organisations or your local council, as many offer energy assistance programmes or can direct you to appropriate support services.
Winter bill shock doesn't have to derail your finances, and you don’t need to let things become unmanageable before reaching out. With early action and open communication, you can find a way through this winter’s bills and find a way to prevent any future crises.
Feature image: iStock/Lol2368
This article reflects the views and experience of the author and not necessarily the views of Citro. It contains general information only and is not intended to influence readers’ decisions about any financial products or investments. Readers’ personal circumstances have not been taken into account and they should always seek their own professional financial and taxation advice that takes into account their personal circumstances before making any financial decisions.
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