Switching hits record in electricity market
Record numbers of New Zealanders switched electricity company in 2017, looking for a better deal.
New data from the Electricity Authority shows almost 441,000 households switched during the year, more than the previous record, in 2015, of 417,642. In 2012, just 356,746 switches were made.
More than 20 per cent of customers changed supplier over the year.
They have more options to choose from: There are now more than 40 retail brands in the market, up from 22 five years ago.
Electricity Authority acting chief executive John Rampton said it was good that consumers were shopping around.
Authority data showed that since its inception six years ago, competitive pressure had kept the retail and wholesale component of prices stable, he said.
‘‘Small or medium size retailers – those outside the largest five retailers by number of customers – now account for more than 10 per cent of the retail market,’’ he said.
‘‘Some of these new entrants have grown their customer base by as much as 20 per cent as they look to target innovative offers to consumers.’’
More than 40,000 households are buying electricity products in ways that didn’t exist five years ago. That includes spot-priced contracts or bundles that include gas and broadband.
Spot-priced retailers increased their market size by about 7000 connections in 2017. About 17,000 customers moved to spot-priced models but 10,000 moved away.
‘‘There’s a recognition that the market is competitive and people do have choice,’’ Rampton said.
‘‘Household consumers are recognising there is an opportunity to shop around and get the deal that best meets their needs whether that’s an innovative product or a lower price. People are aware they have choice now.’’
Consumers can compare pricing at Powerswitch.org.nz or Whatsmynumber.org.nz.