The government’s electricity reforms announced earlier this month mean some big changes for the electricity market. Some of us will be better off, but not everyone. It all depends on how you use power at home, and how you pay your bill.
Check out our breakdown of the changes and our overview of who the winners and losers are in the government electricity form.
The reaction from Power Compare customers definitely fall into 2 groups. This who are going to miss their prompt payment discounts, and those who are expecting better deals to come their way.
Electricity companies have previously offered generous discounts to customers who pay their bills on time. Under the reforms the government is encouraging power companies to scrap the discounts.
Although, this is good news for Kiwis who struggle to pay their bill on time, it’s not good news for those who always do.
If you are going to miss your prompt payment discount, you could try keep hold of it by signing up to a 12 or 24 month power plan with prompt payment discount.
There are lots of New Zealanders who are likely to benefit from the changes laid out in the electricity reform, but it will take time for them to trickle down to the average consumer.
The government is implementing new rules to “level the playing field” for independent retailers by forcing large power companies to sell electricity to independent retailers through the wholesale market "at affordable rates". This should increase competition and push power prices down for everyone.
The reforms include other regulations designed to bolster competition. Electricity companies will no longer be able to offer last minute deals to discourage their customers from switching supplier and jumping ship. The Government believes that banning win-backs will force electricity companies to offer more competitive pricing to all their customers.
These changes could mean big changes in the power market, and it will be interesting to see how power companies respond to them. It looks likely that there will be some competitive deals and new plans headed out way.
If you want to get a good deal on power now, and keep your options open in the future, you could try the energyclubnz special offer.
You could try out energyclubnz. Energyclubnz members pay for their electricity at cost plus a small weekly Club Fee. For a short time only, join energyclubnz and get FREE Club Fees until 2020 - worth up to an additional $130 in savings!
Customers receive ‘low everyday rates’ on their electricity which means that you know exactly what you will be paying – no spot pricing. No fixed term contracts – which means you can take advantage of a great low everyday rate, and switch easily in the future if there is a better deal.