NZ Business Electricity and Gas Setup Guide for New Companies 2026

Setting Up Utilities for Your New NZ Business

Opening a new business premises in New Zealand involves a series of utility decisions that most first-time directors underestimate. Getting electricity and gas set up on the wrong plan costs real money over the life of a lease. This guide covers the key decisions, the process, and how to avoid paying residential rates on a commercial connection.

Electricity: Business vs Residential Rates

The single biggest mistake new business owners make is defaulting to a residential electricity plan or not actively shopping their business connection. Business electricity in New Zealand is priced differently from residential:

• Time-of-use pricing is more common for business accounts, with peak rates (typically 7am-11pm weekdays) significantly higher than off-peak.
• Daily line charges are typically higher on commercial connections because distribution networks recover infrastructure costs differently for commercial connections.
• Energy component (the actual generation cost) is often where the biggest savings are available, as it is fully contestable and varies significantly between retailers.

Do not assume the existing retailer on a commercial premises is competitive. Get at least two quotes before signing a contract.

Main Electricity Retailers for NZ Businesses

The major retailers serving business customers in New Zealand include:

• Mercury Energy (formerly Mighty River Power): Strong in Auckland and Waikato. Business plans with fixed-rate options available.
• Genesis Energy: National coverage. LPG available through Nova Energy (related company).
• Contact Energy: National. Good for multi-site businesses, with consolidated billing options.
• Meridian Energy: Renewable-sourced electricity. Popular with businesses with sustainability commitments.
• Frank Energy: Simpler pricing aimed at SMEs. Less tailored business-specific options.
• PowerShop: Owned by Meridian. Predominantly residential but used by some small businesses.

For businesses using more than NZ$15,000/year in electricity, an energy broker can negotiate commercial rates not available on standard business tariffs.

Getting Connected: The Process

If you are moving into an existing commercial tenancy with an established connection:

1. Contact your chosen retailer and request a business account transfer (ICPs — Installation Control Points — transfer same-day in most cases).
2. Confirm the ICP number with your landlord or property manager. You will need this to set up the account.
3. Choose your billing frequency (monthly is standard for business).
4. Confirm whether a smart meter is installed. If not, request one (free from most retailers for commercial accounts). Smart meters enable time-of-use pricing and give you detailed consumption data.

If you are in a new build or a premises without an active connection, your timeline extends significantly. A new commercial connection typically takes 4-12 weeks and requires a licensed electrician to complete the electrical installation before connection is possible.

Natural Gas: Where It Is Available

Natural gas is available only in specific areas of New Zealand. The Maui pipeline network covers Auckland, Waikato, Bay of Plenty, Taranaki, Manawatu-Whanganui, Wellington, and Marlborough. Canterbury (Christchurch) has a separate distribution network. Outside these areas, reticulated gas is unavailable and LPG (bottled or bulk) is the alternative.

Gas retailers for businesses include Genesis Energy, Contact Energy, and Nova Energy. For large consumers (commercial kitchens, industrial processes, space heating in large premises), direct contracts with lower unit rates are negotiable.

LPG for Remote or Rural Businesses

For businesses outside the gas network, LPG is delivered by:

• Elgas (owned by Wesfarmers, largest LPG supplier in NZ)
• Rockgas (Vector subsidiary)
• Nova Energy

Bulk LPG tanks are generally more economical for businesses using more than 45kg per month. Rental tanks are available from all major suppliers. Ensure your lease allows a tank installation and that you have adequate outdoor space.

Energy Brokers: Worth It for SMEs?

An energy broker acts as an intermediary between your business and electricity/gas retailers, negotiating commercial rates and handling the switching process. Brokers are paid by the winning retailer (commission on consumption), so there is no direct cost to you.

Energy brokers are most valuable when:

• Your annual electricity spend exceeds NZ$15,000 (roughly NZ$1,250/month).
• You are in a large commercial tenancy with high base loads (hospitality, manufacturing, healthcare).
• You are signing a multi-year lease and want to lock in rates.

For very small offices (under NZ$5,000/year electricity), the savings from broker negotiation are modest and a direct comparison via the retailer's business team is usually sufficient.

Timing Your Setup

Utility setup is typically one of the last items on a new business checklist, but it benefits from being done early:

• Confirm electricity ICP and smart meter in the first week of moving in.
• Get gas connected or confirm LPG delivery in week two if gas appliances are involved.
• Review your electricity plan at the 6-month mark once you have actual consumption data to negotiate against.

FreshFirms' Connect service can match your new business with energy brokers and other business services in your region.