24 December - Competitive pressure having positive impact on pricing

Increasing competition in the electricity sector means both businesses and consumers can receive significant discounts - but they need to take action and shop around for the best deal.

In this section:

Carl Hansen, Chief Executive of the Electricity Authority says the public spat between some electricity retailers in the Tauranga region is good for consumers as it reflects increasing competition in the area. Competition has also become more intense across the country. “This year, we’ve seen ad-hoc discounts being offered by a wide range of suppliers looking to attract new customers.

“For residential customers, the discounts have ranged from $80 - $300, and even more in some cases, and commercial and industrial customers have been able to achieve as high as 20% discount on their bills through shopping around.”

In early 2014, the Authority will begin work to develop a comprehensive retail pricing database to make industry pricing more transparent and make it easier for consumers to find the best deals in the market. Currently the official statistics collected by Statistics New Zealand and the Ministry of Business, Innovation and Employment include only standard pricing rates, meaning the competitive discounting activity we’ve seen this year is not reflected in official data.

In the meantime Mr Hansen says the onus is on electricity consumers to look for the best deal available to them. “People should shop around, just as they would when purchasing other services. Make it a New Year’s resolution to take five minutes and check out www.whatsmynumber.org.nz(external link) and then consider the available options."

“During 2013, 393,895 households switched electricity provider, which is a really positive signal that people are actively looking for their best deal. We’d like to see even more of this competitive pressure through 2014.”