Switchme Blog

The new electricity regulator has advised an increase in customers switching electricity retailers and that the market has started to become more competitive.

Chief executive of the Electricity Authority Carl Hansen says the government campaign that encouraged households to shop around for a better electricity tariff has generated more interest than was expected when the campaign launched in May last year.

Energy retailer comparison services such as Switchme.co.nz saw a massive increase in customers searching for a cheaper supplier in July last year and switching power companies.

The amount of consumers switching energy suppliers is still on the increase despite the campaign advertising ending months ago, up 18.6 per cent by a year ago.

New offers by major electricity retailers designed to retain customers were a clear sign that power companies are starting to respond to increased consumer activity the authority said.

Hansen said recently that narrowing tariffs might make customers more “sticky” as benefits of switching retailers became fewer.

“You might expect to see are the headline tariffs converging, but there will be a lot more particular deals and tariff options that will offer good value”.

This proves that encouraging consumers to look for a better deal is forcing the electricity retailers to reward their loyal customers and offer better rates to boost their customer numbers.

The switching campaign will start up again this year and is expected to cause an even bigger impact on the household electricity market.

Visit Switchme.co.nz to find out if you could be getting a cheaper monthly electricity bill or call free on 0800 179 482 for advice.