The What’s My Number campaign which first began last year encourages households to shop around for power and sparked some new and better offers from New Zealand power companies.

The independent, industry funded campaign will widen its attention to business power customers this winter.

Carl Hansen, CEO of the Electricity Authority said shopping around was more complicated for businesses because retailers offered them different prices depending on their location, how much electricity they use and when. Retailers will sometimes offer a better deal to companies who’s consumption better suits their generation abilities he said.

The process will work by a business customers entering their usage details into a website and the details will be sent off to energy retailers which would then come back to the customer with their best offer. The results will then be compiled so that the customer is able to make the best decision on which to choose.

Reports from the EA show businesses and residences throughout New Zealand now have more power companies competing for their custom than they did in 2008.

Hansen said, despite rising competition, electricity prices would generally keep going up barring a major technological breakthrough or big new natural gas find. That was because power generators used the cheapest sources of electricity first.

The campaigne hoped to tie any retail increases more closely to the cost of actual supply by increasing the threat of losing customers.

Source: stuff.co.nz

Figures supplied by Consumer New Zealand show households in Whangarei and Northland rural areas are now paying about $2450 a year compared with $2050 in April 2009.

Empower, which is owned by Contact Energy is the most expensive among the five power companies in both areas with customers paying around $400 a year more than three years ago.  That is an increase of 19.5 per cent.

Mercury Energy is also up there with the most expensive retailers with customers paying around $270 more annually than in 2009.

The figures are based on the most common plan for a household of three to four people using electric water heating, cooking and a mix of electric and other space heating methods such as wood burners and gas heaters.

In March, both Mercury Energy and Contact Energy announce price rises in Northland of 5.8 per cent and 14 per cent respectively.

Consumer NZ has suggested that customers constantly check for cheaper energy retailers and to switch if it means a saving can be made.

Mercury offered a three year fixed plan for selected Auckland customers and later introduced the offer in Northland. However, Consumer have advised against signing into fixed term contracts, which locks customers in for the duration of the contract meaning a hefty termination fee of $150 will be charged if the customer decides to switch mid term or moves to an area not supplied by Mercury Energy.

With the fixed term plan, you’ll have to pay more initially. Consumer estimates that the fixed rate Mercury offers is 9 per cent higher than other existing tariffs. This means any customer agreeing to the deal is agreeing to have their electricity prices increase by 9 per cent over the next three years which must start from when they sign up. This effectively covers the fact that no further increases will affect the customers during the term of the plan.

A consumer spokesperson said “Mercury Energy also increased its prices by 4 per cent in April this year, so anyone signing up to the deal will now be paying 9 per cent on top of that 4 per cent increase.”

Energy retailer comparison site Switchme are advising people to compare all power companies prices to see how many other competitive deals are available before signing into any fixed term contracts.

Visit Switchme.co.nz or call 0800 179 482 for a FREE comparison and find out how much you could save.



Source: northernadvocate.co.nz

Otago Households have seen one of the highest increases at 5.3%, approximately $111.50 annually, while the increase for Dunedin residences was at 3.09% or around $53.07 annually.

Anglican Family Care administers the Dunedin City Council Electricity fund which provides annual grants to families that are struggling to pay their power bills.

Care director Nicola Taylor says there was still a steady demand for the grants and the colder weather had not even arrived yet, so price increases will put more pressure on.

“Electricity is one of the biggest relentless costs our clients face. Price rises are not matched by increases in incomes.”

Electricity prices are made up of three components – the rate charged by the retailer, the price charged by lines companies and the amount that the retailers and lines companies add as their profit margin.

The Powershop analysis showed Dunedin’s price increase was below the national average, and that’s due to there being  more competition between the energy retailers for Dunedin customers and other areas with dense urban centrals and less populated surrounding suburbs.

CEO of Powershop Ari Sargent said that consumers throughout the country would also face steeper electricity price increases in the near future as national grid operator Transpower plan substantial upgrades and maintenance of the country’s electricity infrastructure.

“Just like state highways undergo major realignment work every few decades, the national grid needs a large scale upgrade every 20 years or so.  Right now we are in the peak of that cycle.”

Mr Sargent suggested that the best way to keep your power costs down was to use less, but Nicola Taylor said that it’s not easy to do in Dunedin.

“Dunedin is a colder place and many of our houses are colder and damper too. Dunedin is a place which uses more electricity that other parts of the country, not less. Price rises are going to be tough on people.”

Despite the costs of electricity rising all over New Zealand, the potential to save money is still available.

With so many retailers competing for customers, there can be a difference of up to $50 per month or more between the cheapest and most expensive energy suppliers.

Energy retailer comparison service Switchme are constantly assisting hundreds of customers weekly to switch to cheaper power companies.

The below graphs show the differences between the most expensive and cheapest retailers.

Dunedin customers could be paying up to $56 per month more than what’s on offer by the cheapest energy supplier.

Visit Switchme.co.nz to find out how much you could save, or call 0800 179 482 to compare and switch over the phone.

Source: odt.co.nz

Kiwi’s are running out of ways to save money with even middle income households seeking budgeting advice.

Power companies nationwide have announced price rises due to Transpower passing on the costs of ugrading New Zealand’s energy infrastructure. These projects are expected to continue for the next three years.

However, consumer advocates say the lines companies that distribute and supply the retailers have their own individual problems with maintaining the lines.

Molly Melhuish of the Domestic Energy Users’ Network says “The issue with Transpower is only part of the network story. Most lines companies are not as well maintained therefore they will need local upgrades as well.”

These costs will eventually be passed on to consumers also, many of which are already struggling with the current electricity prices.

A survey by the Sunday Star-Times shows that the increases will affect almost every household’s budget and more sacrifices will have to be made.

The most recent price hikes in the main regions are expected to be around 5 per cent, however households in the Northland region experiencing the biggest increases of up to 10 per cent, which will equate to around an extra $150 or more per year.

Most of the survey participants said they would have to sacrifice holidays, entertainment and certain food items in order to keep up with the bills.

Further concerns are that more vulnerable families such as those medically reliant on electricity will end up with their electricity supplies being cut off.

Auckland resident Folole Muliaga died in 2007 after her electricity supply to her home in Manukau was disconnected and she was left unable to use the oxygen machine she relied on.

After the Muliaga case, the then government wrote to all state-owned enterprises about how they implemented the social responsibility clause in the SOE Act, howver this social responsibility clause will no longer apply under the government’s legislation partially privatising state-owned energy companies, and this could potentially be devastating for struggling families.

In the first quarter of 2007 around 11,500 disconnections for nonpayment occurred.

Salvation Army welfare services head Major Pam Waugh said that the attitude of power companies changed after the Muliaga case, but that disconnections for payment issues had since climbed back up to around 9,000 in the last quarter of 2011.

“In winter we see more people being cut off but we also see it around Christmas and New Year, when children are going back to school and families have high costs.” Waugh said.

“It works well when the power company will negotiate with us. If we were to lose that we’d be devastated because it would affect the ability of our clients to pay off big power bills,” he added.

Consumers also worry that prices will be further increased with the ongoing projects of the Transpower upgrade and the partial privatisation of state owned power companies Mercury Energy, Meridian and Genesis Energy.

Online energy retailer comparison services such as Switchme.co.nz are experiencing increasing numbers of customers seeking a cheaper deal on electricity and expect this trend to strengthen over the coming months as higher power bills through the colder months are received.

If you are concerned about the size of your power bills, visit Switchme or call Free on 0800 179 482 for a free comparison and switching service.

Source: Tvnz.co.nz & Stuff.co.nz

The power company reported an underlying after tax net profit of $101.7 million for the six months to December 31, increased from $89.4 million in the previous period, despite a fall in national power consumption.

Mighty River Power, who retails electricity as Mercury Energy said the fall was caused by non cash market to market movements in the value of its derivative financial instruments during the half year, caused by the global fall in longer term wholesale interest rates. The company’s underlying profits removed these effects.

The better outlook is a result of strong generation and high wholesale prices in recent months.

While a lack of rainfall during the summer, drained South Island hydro storage, pushing up wholesale electricity prices, strong inflow into Lake Taupo, the main water source for Mighty River Power’s hydro assets allowed for higher production.

The average wholesale price was one third higher than it was a year ago as the company used Southdown, it’s gas fired plant to take advantage of the wholesale price spikes.

The high turnover of retail customers saw Mercury Energy’s customer base shrink by 19,000 customers although sales volumes still increased to 2.55 gigawatt hours as the company fought hard to keep larger more profitable customers.

At present, most of the company’s electricity comes from its hydro assets, Mighty River is focusing its future on geothermal developments both nationally and internationally and is currently conducting exploratory drilling in Chile.

Chairwoman Joan Withers said geothermal production would transform the business.

“It’s a game changer for us. Reliable baseload geothermal capacity has significantly expanded and diversified our electricity production from renewable low cost fuels.

From 2013, 40 per cent of the companies generation will come from geothermal sources. As well as being renewable, it is not dependant on the weather like hydro and wind generation.

Mighty River Power is the first state owned enterprise to be partially privatised, with power companies  Meridian Energy and Genesis Energy also on the list for the mixed ownership model.

Source: www.nzherald.co.nz www.stuff.co.nz

Almost 36,000 customers changed electricity providers in February this year, often to smaller firms offering cheaper rates for household energy.

The Electricity Authority began recording numbers 12 years ago and data has shown that in the past year, one in four customers have changed power companies to get a cheaper deal.

These figures have been released as the Citizens Advice Bureau announced a rising number of families struggling to keep on top of their monthly power bills.

Although the data appears to show consumers are becoming more aware of competition  in the market, energy experts have said that switching is not available to everyone – lower income families and customers with credit history issues are often turned away when attempting to switch.

Five of the largest power companies lost approximately 4,700 customers in February while the smaller retailers picked up around 4,500.

Powershop, a subsidiary of state owned power company Meridian Energy, came out on top with 1,786 new customers joining its online service.

Mercury Energy suffered the biggest losses, with 1,640 of its customers leaving for a better deal elsewhere after the company implemented some of the largest power price increases  seen this year.

Some of the power companies have began aggressive campaigns to retain and win back customers offering free credit and fixed energy rates for customers agreeing to stay for a fixed period of time.

Energy campaigner Molly Melhuish has stated that the costs of retaining customers, telephoning and advertising all adds up. “And who do you think pays for this? Everybody else.”

If you are concerned over the price you are paying for your household electricity, visit Switchme.co.nz. If there is a cheaper power company  available to you, we will find it!

Alternatively call us on 0800 179 482 for a FREE power comparison!

Source: www.odt.co.nz

The increases are to be implemented to 22 regions across New Zealand and will be affecting Ashburton households.

Mercury Energy has also announced an increase of its power prices of an average 5.8 per cent from 1^st April which also pointed towards higher distribution charges imposed by the lines companies.

The increases are reported to be connected to the costs involved in the project of up grading the national electricity grid which is expected to be completed by 2015.

Energy retailer comparison service Switchme advises this is going to have a great impact on households, many of which are already paying more than necessary for their power.

Below is an example of the extreme differences in retailer pricing in the Ashburton area based on current rates.

The above example is based on a family of 4 using 900kWh per month with a single 24 hour electricity meter, and is based on today’s rates before any price increases are implemented. There is a considerable $612 annual difference between the cheapest and most expensive retailers supplying to Ashburton.

Contact Energy will be increasing the Anytime rate by 7.3%. The table below demonstrates the annual impact the increase will have on Ashburtons’ households.

Mercury Energy, operated by state owned power company Mighty River Power  is also implementing an increase of its electricity prices of  around 6.3 per cent in Ashburton. The impact of this on a households annual costs is outlined below.

Everyday expenses such as food and electricity constantly on the increase, everyone should be looking for a better deal for power and paying the least amounts as possible on household outgoings.

Why pay more for power than you need to?

At the end of the day, no matter which of the many power companies you choose, the electricity supplied to your house comes from the same place: The national grid. So why pay $30 or more each month than your next door neighbour? At the end of the day, you’ll only simply be changing the logo on your electricity bill.

Energy retailer comparison services such as Switchme.co.nz give you an insight to the electricity market making prices much more transparent and obvious. Switchme has recently launched a new and improved version of its website. The new site makes it even easier to compare power companies, identify savings and switch in a matter of minutes. Switching retailers is a straight forward, 100% free process and your new power company will do all the leg work. You do not even need to contact your old supplier….

The first ever NZ energy retailer comparison service has already helped over 20,000 households find a better power deal and saved Kiwi’s millions of dollars on their power bills.

Switchme are dedicated to saving people money on their household power bills. The site will be offering all sorts of handy advise from how to survive a power outage to how to making your home more energy efficient, so  even if you are already getting the best deal for electricity, the website can still help you save money!

For more information, visit Switchme now

The energy retailers fought against the decision to reverse tens of millions of dollars of unexpected costs for their competitors and major electricity users, caused by the wholesale market spot prices hitting over $20,000 per megawatt hour for around seven hours last March.

The EA declared an “Undesirable Trading Situation” on the price hike which occurred on a Saturday during a previously notified maintenance outage on the national grid.

All prices for March have been reset to no more than $3000 per MWh. Electricity spot market prices normally range between $50 and $150 MWh.

The judge found a range of factors had combined on the day to constitute  the UTS, and that the Authority had made the correct decision.

The judge rejected suggestions from the retailers that the reversal punished companies that had hedged their exposure to the spot market prices appropriately while rewarding participants who had not made the necessary arrangements to protect themselves from price spikes.

“The Authority found that the vast majority of market participants did not foresee the high price.” Judge Ronald Young stated in his 91 page judgment report.

“Those that did were reassured by late March that high prices would not eventuate. In the circumstances, therefore the prices were neither foreseen nor foreseeable.

Power companies such as state owned Meridian Energy were among the worst affected along with Mighty River Power. Other Auckland consumers including New Zealand Steel, The NZ Sugar Company, Auckland War Memorial Museum, TVNZ and Vodafone.  Many of these large commercial customers will be billed on a Time of Use metering system which determines the cost of its consumption based directly on the electricity spot market.

The EA was also found to be correct to declare an undesirable trading situation for worries that the very high prices could affect confidence in the countries wholesale electricity market.

Source: www.tvnz.co.nz

Contact Energy have blamed intense customer competition between energy retailers and the need to use expensive thermal power generation on their profits falling by almost a fifth.

New Zealand’s largest listed power company made $68 million in the six months leading up to December, which is almost 19 per cent less than the profit made in the same period the previous year.

Underlying earnings fell  3 per cent to $76 million, sales rose 7 per cent to $1.9 billion.

But because of the dry weather, The energy giant had to boost low hydro generation volumes with more expensive thermal generation.

The competition for retaining and gaining new customers also heightened due to government’s campaign to encourage households to shop around for a better deal for electricity.

Contact Energy lost a large number of customers early last year as a result in the campaign but coaxed more than 4600 customers back by introducing an increased prompt payment discount to customers using online methods to receive and pay their bills.

Contact says earnings will improve in the second half of the year as retail prices rise and wholesale electricity prices improve.

The government campaigns marketing has started again recently, and is already seeing more customers switch power companies and reducing their power bills.

Source: radionz.co.nz