Electricity demand flexibility – residential hot water control
Powerco is enabling electricity demand flexibility through its ability to control hot water load.
The North Island electricity distributor has the ability to control approximately 195,000 hot water cylinders of homes and businesses across its network through traditional ripple hot water control.
Electric hot water accounts for about 30% of power bills and many residential hot water systems are heating all the time. Enabling electricity retailers to switch off hot water cylinders to avoid peak times when electricity prices are higher, without affecting customers’ hot water supply, has the potential to reduce power bills.
Following a successful trial involving around 30,000 customers during 2024, Powerco is now providing electricity demand flexibility to electricity retailers (as of February 2025) Genesis, Mercury, Contact Energy, Electric Kiwi, Meridian and Octopus Energy.
“By putting the customer at the centre of our decision making and being open and transparent throughout, we’ve been able to work with multiple competing retailers, while still having ripple hot water control available when required,” Powerco General Manager Customer Stuart Dickson says.
Ripple control of hot water is still available should it need to be used for network or system operator purposes.
“The collaborative approach of the 2024 trial led to insights into load profiles at the trial sites and retailers reported great results in moving load without any discernible impact on customer experience - the hot water remained hot. The trial data indicated that there is real potential for positive change in terms of load management, pricing signal adjustments and retailer product offerings.”
Learn about Powerco’s 2024 hot water control trial results.
The North Island electricity distributor has the ability to control approximately 195,000 hot water cylinders of homes and businesses across its network through traditional ripple hot water control.
Electric hot water accounts for about 30% of power bills and many residential hot water systems are heating all the time. Enabling electricity retailers to switch off hot water cylinders to avoid peak times when electricity prices are higher, without affecting customers’ hot water supply, has the potential to reduce power bills.
Following a successful trial involving around 30,000 customers during 2024, Powerco is now providing electricity demand flexibility to electricity retailers (as of February 2025) Genesis, Mercury, Contact Energy, Electric Kiwi, Meridian and Octopus Energy.
“By putting the customer at the centre of our decision making and being open and transparent throughout, we’ve been able to work with multiple competing retailers, while still having ripple hot water control available when required,” Powerco General Manager Customer Stuart Dickson says.
Ripple control of hot water is still available should it need to be used for network or system operator purposes.
“The collaborative approach of the 2024 trial led to insights into load profiles at the trial sites and retailers reported great results in moving load without any discernible impact on customer experience - the hot water remained hot. The trial data indicated that there is real potential for positive change in terms of load management, pricing signal adjustments and retailer product offerings.”
Learn about Powerco’s 2024 hot water control trial results.