The front page headline of the Sunday Star Times (July 12, 2009) claims that “Customers win big in power wars”. We have a different view. We think that power customers are being betrayed and the vast majority of customers are losing out. The “win-back” practice of other power companies is benefiting only select customers at the expense of all customers. To offer a departing customer $200 or more to stay is wasteful, silly and ultimately unsustainable, but what’s worse, we think it is outrageous that these companies are rewarding their disloyal customers (those who have chosen to leave) at the expense of their loyal ones.
Powershop is founded on the principle of bringing competition to the retail marketplace. We see a selective but aggressive customer poaching practice as a deliberate attempt by power companies to subvert true competition – rather than put their best offer on the table, they are using the profits they make from other customers to bribe a select few customers back. These win-back offers also most often come with hooks (there is no free lunch) such as being locked in for a fixed term. And don’t be fooled by “price freezes”, wholesale prices are picked to stabilise or fall in the near term (primarily due to increased capacity coming on stream and reduced demand with the slowing economy).
People. It is time to exercise some consumer power, let your voice count. Here’s what you should do. SWITCH POWER COMPANY NOW. You have nothing to lose. Here’s what you stand to gain if you switch now:
- you learn how easy and painless it is to switch. You don’t need to feel trapped with your current company ever again.
- in most cases you can get a better deal.
- you may get an attractive offer to stay with your current company (if you are comfortable with it, take it while you have the chance).
There truly is nothing to lose. Even if you don’t think Powershop is for you, seriously think about changing power company anyway (we’d love you to give us a chance though).
Switching to Powershop only takes 5 minutes and can all be done online. All you need is your address and either bank account or credit card details (other details off an old power bill are handy but not essential). Get started here.
Power to the people!