Power deals going begging
Tempted by an electricity company’s claim to be environmentally friendly? Or hesitant to move from a big player to a new entrant, because you’re worried about the security of your power supply?
Don’t be, say the Electricity Authority. When it comes to electricity, the product is the same wherever you get it.
Authority chief executive Carl Hansen said electricity was a commodity. ‘‘All electricity is exactly the same. There are 31 retail electricity brands in the market. Just because the brand has been around longer, doesn’t mean your electricity supply will be more reliable.’’
His research showed that people who switched power company rated the price and discounts as the most important factors in their decision making.
But those who did not switch or check for a better deal were more likely to focus on brand values.
Hansen said it was a myth that some retailers could provide more renewable electricity.
Electricity Authority research also showed 31 per cent of consumers weren’t willing to switch retailers unless they could save $250 or more a year.
Hansen said that meant some were missing out.
‘‘It takes only two minutes to check if you are on the best electricity deal at www.whatsmynumber.org.nz and the estimated average saving available is $175.
‘‘Unless you are earning millions each year, $175 for two minutes is a pretty attractive pay rate. Switching electricity retailer is incredibly simple – it’s not at all like the complex and timeconsuming processes in some other utilities. In electricity, the newly chosen retailer takes care of all the arrangements.’’
Jenny Cameron, chief executive of the Electricity Retailers’ Association, said the feedback to retailers was different to what the Electricity Authority had received.
‘‘Customers do see value in services being offered by the different retail brands. That is demonstrated by the growth in new retail brands and in offerings from existing brands.
‘‘Stating that electricity is only a commodity and focusing singularly on price is a narrow view of the potential of the electricity retail market.
‘‘Competition drives more than just a reduction in price, it also enhances services, and this is exactly what we are seeing in the New Zealand electricity retail market.
‘‘Customers are making choices based on more than just price all the time, and they may choose to stay with, or change, retailer based on those non-price factors – such as high-quality customer service, tailored personalised packages, high level of transparency and technology, ability to offset carbon emissions, or just the fact that the retailer has a great brand that they like.’’
Meridian has advertised its smaller ‘‘carbon footprint’’.
Neal Barclay, Meridian’s general manager of retail, said customers wanted more than just the best price price.
‘‘Savvy customers often value other aspects including service and our position as a renewable electricity generator – this is all part of a competitive retail market.
‘‘All electricity retailers are not the same and focusing on price only is myopic.’’