Labour to Cap Loyalty Prices on Utility Bills

New Zealanders who keep the same service provider for years could stop paying higher bills than new customers if Labour wins the election on November 7. The party released a policy document on Monday outlining rules to close the price gap between loyal and new accounts.

Leader Chris Hipkins stated that people should not need to spend hours comparing prices or switching companies to get a fair deal. He noted that many consumers see their costs rise when introductory deals end or when they discover a sale was not a true bargain.

Under the proposed rules, phone, internet, and insurance firms would be prohibited from charging longstanding customers more than they charge new ones. The policy also targets pricing structures that shift customers onto expensive plans after a promotional period concludes.

The plan includes a ban on what the party calls fake discounts. Advertisers would have to base claimed savings on the lowest price charged for that specific product within the previous 30 days. Labour noted that power companies are already required to ensure customers are on the best available plan.

Arena Williams, the party’s spokesperson for commerce and consumer affairs, said New Zealanders deserve honest deals and more money left over at the end of the week. She described the package as a direct effort to tackle the cost of living and provide a fair outcome for household budgets.