How to get power if you’ve got a bad credit rating

Having a bad credit rating can make it challenging to find a power company that will take you on. But you do have options.  

What are my rights if I have a bad credit rating and need to sign up for power? 

At the moment, New Zealand’s power companies voluntarily follow the Consumer Care Guidelines. From the start of 2025, the guidelines will become mandatory, so power companies will have to follow them.  

The guidelines say power companies should consider whether a bad credit rating is the result of historical financial pressure. If you’ve got a bad rating, it’s a good idea to be honest with the power company – let it know if you’ve had financial hardship in the past but are no longer affected. 

Under the guidelines, power companies should also consider whether you’re working with and acting on the advice from a social services agency, such as a budgeting service.  

MoneyTalks is a free financial helpline that connects you with financial mentors, so you can work out together how you’re going to pay your bills. Getting MoneyTalks’ or another service’s support could show a power company you’re taking your financial obligations seriously. 

What should I do if a power company says it won’t be my provider? 

If a power company says it’s not willing to have you as a customer, it should explain why and what you can do about it.  

The power company should give you information about where you can go for help, such as to a financial mentoring service. These services can help you with getting a company to sign you up. 

Is prepaid power a good idea if you have a bad credit rating? 

If you need to get the power connected quickly but can’t find a power company willing to take you on, prepay can sometimes be your only option. The three main prepay providers in New Zealand are Globug, Wise and Contact Energy. 

Prepay power is like having a prepay phone. If you top up your power account, the power stays on. But once you don’t have any credit left, you won’t have power.  

Check out our article on the risks involved with prepay power.