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The Sunday Star Times this morning (6 September 2009) again features an article about electricity - Flick the switch and save packet.

We fully endorse the claims made by reporter Lois Cairns that “Thousands of kiwi homeowners are still paying more for their power than they need to and could save money simply by changing their electricity supplier”. In fact they are very similar to words we ourselves have been using for some time.

Hunting out a good deal

Hunting out a good deal isn’t difficult and switching is really easy and painless.

Consumers Institute has a great website resource (www.powerswitch.co.nz) for electricity users to find out what options are available in their area, and will highlight the cheapest supplier.  Unfortunately, Consumer has set up powerswitch to compare traditional tariff options and as yet have been unable to incorporate Powershop directly into their calculations due to our simplified pricing structure. This is a real shame because Powershop is currently the cheapest supplier in many areas. We are currently working with Consumer to help them incorporate Powershop directly the powerswitch.

In the meantime we suggest that customers either use the Powershop savings calculator or if you prefer use the independent advice from Consumer to help you find the cheapest option for you (beware of any special conditions from retailers) and then use our savings calculator to compare estimated annual costs between Powershop and the cheapest option recommended on powerswitch.

Once you have decided the best option for you, whether that is Powershop or someone else, switching is generally a simple matter of contacting the new retailer and providing them with the information they need. The switch itself may take a few weeks to complete, but there will normally be nothing else that you will be required to do, and there won’t be any disruption to your normal service during the transfer.

Powershop has made the switching process even more painless for our customers, because:

- it can all be done online (and we’re only a phone call away if you need help)
- we do not do credit checks, and we do not require bonds from our customers
- we keep you informed during your transfer so you know what is going on
- we offer a 60 day guarantee, if you are not happy during this timeframe we will help you transfer back to your old supplier and refund any unused power - no quibbles.

So why not exercise a bit of buying power - spend 10 minutes checking out the best option for you, and if there is a better deal out there for you, grab it! Switching electricity retailer is not a life changing decision - it is easy and you can always change again if you are unhappy with the service or price of your new retailer. We’d love to have you as a Powershop customer, but even if we’re not for you, you owe it to yourself to check out if you can get a better deal.

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!