Electricity

12 February 2010

Time to switch

Switchvisualpun Contact Energy’s New Year’s gift of a 5% price hike to 300,000 of its customers should backfire on the company if canny consumers do what they ought – shop around for a cheaper deal. And if visits to our free Powerswitch site this week are anything to go by they are doing just that.

On the day of the announcement there were 2199 visits to Powerswitch, which for this time of year is 400% above average. In fact this is the highest number since August 2009 and there were only 6 days across last year’s winter months that saw more visits.

Just over a year ago when Contact Energy significantly raised its prices, visits to Powerswitch doubled, then when a few weeks later the company tried (unsuccessfully) to double what it paid its directors, visits to Powerswitch tripled. The company lost more than 40,000 customers then and it has set itself up to repeat that debacle.

I checked out the cheapest options for Contact customers in Kapiti and Northland, and for a family of three to four, savings of $150 and more can be had simply by switching to a new retailer.

Energy Minister Gerry Brownlee is encouraging people to shop around and we support that. Shopping around can also encourage the incumbent retailer to match better deals being offered elsewhere, so if you are a Contact customer you might force the company into matching competitor prices. If competition is going to work in this market, consumers should take action when they can.

The time has never been better to check out which is the cheapest energy supplier in your area. Visit www.powerswitch.org.nz.

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Mike Cleary 15 February 2010

We are gas and electricity residential consumers. We switched from Meridian to Contact to Genesis last year while moving house.
Each time this was done through call centres and there were significant problems. I wonder if Gerry brownlee has ever personally dealt with these systems. The emotional clap trap of the discarded supplier when you do change despite figures to the contrary reminds me of what happens when you stop Sky, must have the same PR merchant. Anyway this experience makes me hesitant to change because you get multiple bills that never seem to correspond to dates and you end up confused. We even got charged the penalty for not paing promptly because the delay when it went internally from the gas to the electrity department meant it arrived "late" even though it left our bank account before the ue date!!!.
If the Powerswitch route avoids dealing with a call centre as well as having it in writing, then it may stop all the shenanigans

Mike

Judi McCracken 15 February 2010

Interestingly I got a phone call yesterday offering me 50 flybuys to switch to Contact, and ongoing Flybuys points. I got out my Genesis bill and the woman asked for a number off it. She was about to give me comparisons then I was abruptly cut off. Maybe Contacts prices were higher. I"m pleased I didn't waste any more time.

megan jenkins 16 February 2010

I am with Mercury Energy and if they go up I will be changing to Genesis - are Contact and Mercury the same company ? - sounds stupid of me not to already know the answer !

Paul 18 February 2010

A few weeks before the Contact price rise was announced, I had a Contact 'door-knocker' come round. He was offering discounted prices to switch to Contact (of about 10% lower than those listed on the Contact website). I filled it in as it would have saved me almost $20 off one bill from Meridian. When Meridian got wind of me wanting to move the account to Contact, they (- Meridian) offered me an extra 10% 'prompt payment discount' (- so now 20% discount). So discounts are easily available. My advice if a door-knocker comes around: check the prices out, and even if they are slighty cheaper, go with the new one - you will probably find your existing supplier will offer you further discounts to stay with them.... :-)

Linda Kaye 1 March 2010

I switched from Contact to Mercury, using info based on Powerswitch calculations, when the business of doubled fees for directors came up. I couldn't believe they were doing that, and I can't believe how much lower the bills are with Mercury. I think the principal reason for the lower amounts is that Mercury actually reads the meter for every bill. Contact sent bills for "estimated" use that bore no resemblance to the amounts I was actually using. Then, once or twice a year I would get a bill that was all credit. This meant that I was effectively paying them to hold onto my money in advance of the power use - like pre-pay phone cards, but without the control of how you spend them. And of course, there were penalties for not paying the bills on time even though I hadn't used the power. Personally, I think if Contact lost all of its customers and went out of business yesterday, it wouldn't be soon enough.

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