Switch and Save: How To Cut Your Bills In Half This Season

We’ve all seen them — the “free TV” or “free phone” incentives used to lure people into switching power providers. But before jumping on the bandwagon, it’s worth doing the maths. Often, these offers come with higher ongoing costs that wipe out any short-term gain. Use your power app or billing portal to analyse how much electricity your household actually uses. When one of our hosts ran the numbers, the flashy freebie didn’t stack up against the long-term cost of switching.

And bundling your power, internet, and gas with one provider? While it sounds convenient, it isn’t always cheaper. Treat each utility as a separate decision and compare them independently.

Different providers offer very different pricing structures — and understanding those can unlock big savings. For example, Electric Kiwi’s “Hour of Power” lets users nominate one free hour of electricity use per day. If you time this right, you could save significantly by running your dryer, heat pump, or dishwasher during that window.

Other providers like PowerShop use prepaid top-up packs that can feel like a discount, but aren’t always the most efficient option. It’s worth reviewing your usage over time and comparing it against other plans.

One of the best tips? Use tools like PowerSwitch (run by Consumer NZ) to compare power providers based on your actual usage. You input your household size and habits, and it recommends the most cost-effective plan. And don’t stay loyal for the sake of it — utility companies rarely reward long-term customers. Regularly reviewing your plan could save hundreds.

Just like mortgages, some power companies offer fixed or variable rate plans. A fixed rate locks in your electricity cost for a set term (usually one year), providing stability and making budgeting easier — especially if you’re worried about winter spikes. But you’ll likely face cancellation fees if you want to switch before the term ends.

On the other hand, variable rate plans fluctuate with the market. They offer flexibility, but less predictability. If global events or supply issues push prices up, your bill could jump unexpectedly.

The key is understanding your financial personality. If you prefer certainty and consistency in your monthly expenses, fixed might be better. If you’re comfortable riding the wave in exchange for possible savings, variable could work.

One often-overlooked area of overspending is insurance. Many people are either overpaying or overinsured. Reviewing your policy once a year is crucial, especially if your circumstances have changed.

It’s not something to do blindly — especially with personal insurance where exclusions or changes in terms could leave you exposed. This is where working with a financial adviser becomes valuable. At Lighthouse, we offer insurance advice at no cost to you, so you can be confident you’re getting the right cover at the right price.

• Don’t be dazzled by “free” sign-up bonuses — always do the maths.

• Bundling utilities isn’t always cheaper — compare individually.

• Take advantage of tools like PowerSwitch to compare plans based on actual use.

• Consider fixed-rate plans for stability, or variable for flexibility — but know the trade-offs.

• Review your insurance annually — you could be overpaying or over-covered.

• Loyalty doesn’t pay with utility providers — switching can lead to big savings.

If you’d like to learn more, check out these other episodes below.