Contact Energy has revised its prompt payment discounts – and existing customers may be worse off.
Prompt payment discounts (PPDs) are the discounts you receive for paying your bills on time. From 10 December 2012, Contact has increased its PPD for residential dual-fuel customers from 10 percent to 15 percent. However, a previous additional discount of 40 cents per day for dual-fuel customers has been abolished. This means you’d need to spend $3358 a year to break even – anything less than that and you’re worse off.
If you are an Online Ontime dual-fuel customer you continue to receive the original 22 percent discount. But you also lose the previous 40 cents per day discount, meaning you’re worse off by $167.90 a year.
You can receive either the 15 percent discount or the 22 percent discount – not both.
So it's a discount unless you were already receiving the discount, in which case it’s an increase.