The average saving for people who switched power providers on Powerswitch in June was a whopping $524 per year.
This time last year, the average saving for switchers was $380, in June 2023 it was $329.
“In our recent energy survey, 4 out of 5 consumers said they would change providers if the annual savings were more than $400. Many people may not be aware that we have well and truly crossed the savings threshold,” said Paul Fuge, Powerswitch manager.
These significant savings have coincided with electricity costs incurring their biggest quarterly price increase in 10 years. Price rises are expected to continue.
According to Consumer NZ's July Sentiment Tracker, concerns about the costs of household energy have reached their highest level in 3 years, with over a third of New Zealanders placing it in their top three financial concerns.
“Our energy survey found that 1 in 10 New Zealanders feel they have had to cut back on their heating because of the cost, which is a serious concern. No one should be cold at home this winter; we urge people to shop around to get the best possible price for their power.”
Watch out for the loyalty tax
According to Consumer, 45% of New Zealanders have been with their current electricity provider for more than 5 years. The advocacy group says this could be because people believe they're getting loyalty discounts, or they think it's too much of a hassle to switch.
“New Zealanders are a loyal bunch, but we want to make it clear that when it comes to power prices, it rarely pays to be loyal,” said Fuge.
“There’s no such thing as premium power – so why pay more than you have to?”
Consumer's annual energy survey also consistently finds that switching is easier than it seems.
“People who haven't switched recently think it’s difficult, but that perception tends to change once people have switched.
“It’s a bit like karaoke – some people are reluctant to take the microphone but once they get up and going, it’s hard to stop them. We see the same with switchers, once people see how easy it is, they keep at it, frequently checking and switching to save even more money.”
Fuge says Powerswitch is seeing its highest ever number of users.
“Over the last year there were 745,000 Powerswitch user sessions.”
People power
According to Fuge, when more people switch it puts pressure on retailers to make their prices competitive.
Currently, for every 1% increase in households that switch energy providers, it's estimated that consumers collectively save around $10 million annually.
“We all have the power to generate competition and competitive pricing, head to Powerswitch to check whether you can save today.”
Powerswitch is a free and independent power comparison service run by Consumer NZ.
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