The MBIE statistics, released today, show that electricity retailers reduced their energy prices by 2.3 per cent in the year ending June 2015. With transmission and distribution charges (the monopoly parts of the electricity sector) taken into the account, total electricity prices fell by 1.4 per cent over the last year.

Carl Hansen, Chief Executive of the Electricity Authority says the 2.3% reduction in prices in the competitive part of the sector shows that competitive pressure is lowering the prices Kiwis pay for their electricity.

“There is significantly more price discounting occurring and it’s clear the larger retailers are fighting hard to maintain market share in the face of sharp competition from some small and medium sized players.”

The Authority tracks the market share of the retailers. In the year ending June 2015 there were particularly notable increases for Trustpower and Nova (both grew by more than 10 per cent), and for Flick (which grew from 30 customers to over 2,200).
In comparison, Genesis, Contact and Meridian lost market share. These changes have impacted the overall concentration of the retail electricity market with the weighted average market share held by the four largest companies in each region of the country continuing to fall at an increasing rate.

Mr Hansen says, “We’re continuing to work on initiatives to encourage even greater competition in the market, particularly through our retail data project which will make it easier for consumers to find the best electricity package for their particular circumstances.

It’s still important that consumers regularly check they are getting the best deal on their electricity prices at www.whatsmynumber.org.nz,(external link) as active consumers can help keep this competitive pressure on.”

Figure 1: The weighted average market share held by the four largest retail parent companies in each region has decreased rapidly since 2010

Figure 1: The weighted average market share held by the four largest retail pare

Figure 2: Close-up of trend shown in Figure 1. 

Close up of trend shown in Figure 1

 

For more information:

Leah Chamberlin 
Communications Adviser
021 073 7777

Nicky Chilton
Communications Manager
021 321 831