Record Number of Power Company Switches in October 2018
Did you recently switch your power company provider?
If so, you’re not alone.
October 2018 saw a record-breaking number of switches made from one power supplier to another. Reports from the Electricity Authority showed that 38,870 households decided to go with a different energy supplier, an increase of 6,000 from September.
Wondering why so many Kiwis made the switch? Curious about which companies gained the influx of customers? We have all the details about the recent spike in power company switches!
The Reason Behind the Increase in Energy Company Switches
By the end of October, wholesale energy prices increased to $1,000 a MWh for certain parts of New Zealand.
The majority of NZ households wouldn’t have noticed the price increase. However, the one per cent of New Zealand customers that are on variable plans that follow spot prices definitely would have. Some of these customers saw their energy bills increase to hundreds of dollars per week.
Since variable-price providers’ prices can change at any time, choosing to use a spot-based retailer does have some risk. While having the ability to lower your energy cost, this spring’s energy market also shows that spot pricing can negatively affect your energy bill almost overnight.
Meridian Energy Customer Base Soared in October
Meridian Energy, the country’s largest renewable energy company, added 1,249 new customers during October.
The most popular switching region was Canterbury, which had over 2 per cent of its residential, industrial and commercial customers changing energy suppliers.
Wholesale Price Increase Results in Energy Companies Closing
Citing unsustainable funding pressures, PowerDirect and Payless Energy recently announced they were exiting the market.
The Electricity Authority (EA) is currently reviewing a joint complaint from Pulse Energy, Electric Kiwi, Vocus Communications and Flick Electric about wholesale market conditions. The complaint claims that the unjustified, non-transparent spot prices are threatening independent competition in the energy market.
Too Many Customers Switching from Variable-Price Providers
There were so many customers trying to switch from spot-price providers that some energy companies had to turn customers away. Electric Kiwi and Nova Energy for example had to refrain from taking on additional customers trying to move from spot-price providers.
Are You Using the Best Energy Company?
At Switchme, we pride ourselves on staying abreast of the latest news in New Zealand’s energy sector. Doing so helps us provide our valued customers with the best energy deals. Check out our website to learn more about how we can help you find the best power company for your household’s needs!