Are You With The Most Expensive strength Company?
strength prices vary greatly between regions and retailers. One household’s cheapest option could possibly be the most expensive for another household in other places in New Zealand. What was cheap for you this year may be too expensive the next!
This is why it’s important to keep an eye on the continued price changes of strength companies.
Earlier this year the government launched a campaign which promoted Kiwi’s to begin shopping around for a better electricity deal after a survey revealed that over 50 per cent of households were unaware that a better deal was obtainable.
The campaign proved a big success with Electricity Authority figures showing the amount of customers that switched retailers over the last summer period in preparation for the winter’s consumption climb is the highest it has been for more than 10 years.
Powershop, who is a subsidiary of Meridian Energy had just 2189 customers in June 2009, and has grown over the last two years to an impressive 33,419 customers. June and July this year was Powershop’s busiest ever for acquiring new customers, said its chief executive, Ari Sargent.
Pulse Energy are experiencing a similar situation. They had 7304 customers in June last year, and had grown to 25,798 by June 30 this year.
Energy retailer comparison service Switchme.co.nz saw July this year as its busiest month since launching the free to use website in 2009, switching thousands of customers to cheaper strength companies. The free online comparison service has saved new Zealander’s over $1.5 million so far.
Privately owned Contact Energy were one of the major losing retailers in this years switching frenzy, experiencing a mass exodus of customers switching away to cheaper energy providers. Contact lost on average 2000 customers a month in April and May this year. A further 7679 customers switched away to other retailers throughout June.
This prompted the energy giant to take drastic action, in order to stem the flow of customers leaving, they introduced a new plan on 1st August which offers customers a hefty 22% discount for prompt payment if they opt to receive and pay their bills online.
strength prices are at risk of increasing further if state owned strength companies such as Meridian and Genesis Energy are partly privatised, such is the plan of National if they win the upcoming election.
The SOE’s could be privatised by up to 49 per cent meaning the shares could be sold to overseas proportion holders, increasing the need to maximise profit margins.