Customers ditch big power firms
Big winter bills have prompted many New Zealand households to see if they can get a better deal on their electricity.
Around 111,000 Kiwis switched power companies between June 1 and August 31, according to the Electricity Authority.
Mercury, Flick and Electric Kiwi were the most successful over the winter months, each with a net gain of more than 2000 customers. Flick and Electric Kiwi had a net gain in all the regions in which they operate. But bigger firms lost out. Genesis dropped a net 6341 customers and and Contact lost 2336 over the three months of winter.
Flick chief executive Steve O’Connor said there were good savings to be made through his company’s model in winter. It passes on wholesale rates to customers, plus a margin.
In winter, more rain meant more hydropower, which kept prices down even when there was more demand, O’Connor said. He said Flick customers had made savings of about 22 per cent on average, compared to what they would have paid on standard pricing structures.
‘‘When we come into winter people start getting their first bigger bill and it makes them wonder if they are with the right retailer. The biggest volume of switches in New Zealand is in the early phases of winter.’’
Electric Kiwi managing director Julian Kardos said smart meters were driving change, too. More than 70 per cent of homes now have a smart meter and Kardos said that enabled innovation.
He said his company’s customers had saved on average 18 per cent through the more hands-on model to manage their power use. They can receive one hour of free off-peak power a day. ‘‘If companies can start to use data to create innovative ways to bill electricity, it should be the start of an evolution.’’
Electricity Authority chief executive Carl Hansen said customers who switched were able to find better deals and were adding more competitive pressure to the market. He recommended shopping around, whatever the season.
‘‘Electricity consumption in New Zealand typically goes down between 14 per cent and 17 per cent in summer, but you can still save money by checking you are on the best deal for your circumstances.’’