Customers ditch big power firms

Big winter power 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. But Genesis lost a net 6341 customers and and Contact lost 2336 over the three months of winter.

The estimated annual average saving for consumers who switched was $175 in 2015.

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.’’

More people were starting to realise the value of shopping around, he said.

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.

Electricity Authority chief executive Carl Hansen recommended shopping around, whatever the season.