Power Prices are still too high – record numbers switch to better power deals
A whopping 42,000 households switched plans between different power companies in August – the second highest month on record according to data released by the Electricity Authority (EA).
Switching was the highest ever for an August month. In total, 445,000 households switched their power provider in the past year.
Electricity Retailers’ Association Chief Executive Cameron Burrows says "But that’s only part of the switching picture. Data from the EA’s Electricity Consumer Survey indicates 165,000 households switch plans within their existing retailer each year”
"There’s never been a better time to compare power plans, with the average annual power bill now at its lowest level in ten years.
"New Zealand has a competitive electricity market, with 39 power companies competing for customers. It’s great to see so many Kiwis comparing plans and making sure they’re on the right one for them.”
Are Power Prices still too high?
A consumer advocate says that power prices should be falling faster than they are. Government data shows that the average power bill for New Zealand households has fallen since 2015 when adjusted for inflation.
However, a key reason for this decrease is that on average homes are using less power – the price per kilowatt has only decreased from 29.9c per kWh in 2015 to 29c per kWh in March this year. The average price paid by households per kwh has dropped by less than 1 cent.
Jessica Wilson, head of research at Consumer, said in other markets where there had been a demand drop, prices had fallen significantly. That had not been experienced in New Zealand, she said.
That means it is more important than ever to engage with your power plan and make sure you are on the right power plan for you.
Are you on the right power plan for you?
If you haven’t checked your power plan in a while, this is a great time to compare the options and make an informed choice about the best plan for you.
With 39 power companies all competing for market share – we are seeing lower prices and innovations in terms of plans available.
A key innovation we are seeing at Power Compare is the option to save on your power by bundling it with broadband. Bundling your power and broadband gives you the convenience of only dealing with one provider and billing cycle, and it can often save you money.
We can help you compare power and broadband plans to make sure you get the best Power and Internet package for your needs.