Sue Chetwin, Chief Executive
It’s an old (possibly tired) mantra but when it comes to power prices, it can’t be wheeled out often enough – that is “shop around”.
And our recent Electricity prices report gives you at least 400 reasons why. We’ve worked out a small household can save up to $442 a year, while a large household can save more than $1000, simply by switching providers. Those sorts of savings are not to be sniffed at, particularly as we head into the depths of winter.
We’ve got strong concerns about the amount consumers pay for electricity and our article shows how unrelenting the increases have been – since 2002 average residential electricity prices have risen by 4.7 percent a year in real terms.
We’ve also got question marks over the experiments various governments have tried to create a competitive market. Our recent submission on electricity market reform made it clear, if all users – industrial, commercial and residential – did not start bearing a fair share of the costs, a radical reassessment of the market-based model would be required.
However, we think the proposed reforms will get us closer to a successful market, but that will require action from consumers. Although prices have gone through the roof, our research shows you can make big savings by “shopping around”.
And innovation is emerging. In every area we surveyed and for every household size, relative market newby Powershop (admittedly a subsidiary of heavyweight Meridian Energy) was the cheapest. It’s an online business only and you have got to be interested in making savings, but the people who join Powershop become converts – even our own staff who have switched. Our most recent survey of members showed Powershop customers were more satisfied with their provider than other electricity consumers.
It pays to regularly check power prices. Visit our free switching site www.powerswitch.org.nz. The power is in your hands.
Sue Chetwin
Chief Executive
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Yes, we are Powershop converts too! I keep track of how much we spend on electricity per month. For spending as much as we did in seven months last year, we have bought enough electricity with Powershop to last us an extra five months. Powershop's pricing is competitive, but our increased awareness of ou usage has made the difference.
I have been comparing the last 6mths worth of powerbills on the Powerswitch site. After continually being advised that one in particular kept coming in ahead of the rest I finally emailed the favoured company, gave them our power reading, what plan we were on etc and asked them what the difference would have been had we been supplied by them. The answer was a paltry $1.34!! You are so having me on?!! I asked them to do it again and still the same.
So we are staying put.