Switching providers on the up

WELLINGTON: Data from the Electricity Authority show 69,000 account holders switched energy companies from March through August this year.

The rate of switching was particularly pronounced over the winter months, with the rates of defection increasing significantly in May, June and July.

Each of these months saw large increases when compared to the movement of customers a year earlier.

The winter data this year corresponds with a period of increased working from home, as the nation grappled with the Government's lockdown response to the coronavirus pandemic.

The big winners from the exodus of customers were smaller players Electric Kiwi with a gain of 13,100 customers and Nova Energy, which added 8900 to its customer roster.

Electric Kiwi chief marketing officer Andrew Cooper says that movement of customers indicated that New Zealanders were seeking deals in a tough economic climate.

While major power company Meridian added 7500 customers, the same could not be said of the other major players in the market.

Mercury customer numbers dropped by 13,500, Genesis fell 11,300 and Contact dropped 9700.

Mercury retail digital general manager Kevin Angland attributed the drop in customers to heightened competition in the market but added that the company was shifting its focus to loyalty and customer value rather than overall numbers.

The switching data tells only part of the story for some energy companies.

Contact general manager of profitable growth Matt Bolton explained the data did not account for the customers his firm added through its acquisition of Energy Club.

‘‘We have approximately 4000 more electricity connections than we did at the end of February 2020,’’ Mr Bolton said.

He added the company now had close to 35,000 broadband connections on the book, acquired through its promotion of bundle packages. — The New Zealand Herald