Young Southlanders are being encouraged to join Grey Power so they can be eligible for cheaper electricity.

Grey Power has a deal with Pulse Energy that allows its members to receive lower electricity prices.

Southland Grey Power president Geoff Piercy said the age to join Grey Power was supposed to be 50 and over, but he was welcoming younger people into the fold so that they would also be eligible for cheaper electricity prices.

The cost of joining Grey Power in Southland is $15 a year for a single person and $25 for a couple.

Mr Piercy said many members were saving much more than that in electricity bills.

"I have had one fella who reckons he saves $300 a year but some of the lower users save about $40 a year [compared to their previous bills with other electricity companies]."

Mr Piercy said he believed New Zealanders were being "ripped off" by electricity companies nationwide, so he wanted to help them.

"We will basically look at anyone that wants to join Grey Power. My social tendency tells me people are being ripped off and Grey Power was founded to stop people being ripped off, and this is something we can do for them."

He urged people to find out whether they would get cheaper power prices with Grey Power Electricity before they joined Grey Power.

"It will be worth people making the inquiry because some people are making substantial savings. If they find there's an advantage, then join."

The chairman of Grey Power's advisory group on energy, Allen Davies, speaking last year, said estimates showed average expected savings for people with Grey Power Electricity were about 11 per cent, but that was highly variable.

Grey Power New Zealand president Roy Reid confirmed that people of all ages could join Grey Power, but he hoped those under 50 would join for more reasons than just to get cheaper electricity.

He was saving $20 a month on his previous power bill since joining Grey Power Electricity, while others north of Wellington were saving about $35 a month.

Youngsters wanting to join Grey Power for cheaper electricity should get in quick.

Mr Reid said Grey Power was holding its annual meeting in Invercargill in May, with a decision to be made on whether members must be aged 50 and over.