While all power companies provide your home with electricity, the experience can differ quite a bit. The way you’re billed for power, the time you can use power heavily, ways to save are all things that you should consider when deciding on the best power provider for you. In this article we offer some food for thought as you look for an energy company. So read on and learn about these things you should ask each power company about - or at least look for in your online research and comparison.
Are you a low user of power?
How much power are you using over the year? This is important to understand because broadly New Zealand households are divided into ‘standard’ or ‘low user’ categories*. Typically, if you use less than 8,000 kwh a year at your primary residence (and not, for example, a holiday home), the Low User option may be best for you. This rises to 9,000 kwh in parts of the lower South Island.
Why is it important to know if you’re low or standard use? Historically, retailers have been able to charge lower daily rates for those in the low use category, whilst charging higher rates for each kWh of power used. So, you should check to see if you’re on a low user rate and whether you’ve got options in the market for savings as a low user. There are other ways to save on energy even without this threshold sticking around as part of standard retailer pricing models.
*Low user fixed charges are being phased out over the course of a 5-year period by the New Zealand government. This started on 1 April 2022. You can find out more information about this change here.
Do you do your cooking, bathing and washing outside of peak hours?
Whilst a lot of Kiwis are operating on the typical 9-5 schedule with the peak of home power use either side of the work/school day, there’s many who aren’t locked into this routine. The busy periods of power which we refer to as ‘peak’ times put a lot of demand on the grid for generation and transmission, so typically attract higher kWh prices at wholesale. If you’re able to do heavy power use activities like bathing, laundry and preparing dinner outside of peak hours (these vary across regions), you might get the benefits of saving by getting onto a ‘time-of-use’ plan. These arrangements are offered by many retailers, and they incentivise households to maintain off peak power usage habits by charging less in these periods, but more than standard in peak times. As you research different power companies, make sure you look around for their time of use plans and understand what the difference in usage rates would be versus the standard rates. Most websites should have this information, otherwise you can get in contact with them to find out.
Who would benefit from time-of-use plans? A great number of people actually. Anyone living on their own who has the flexibility to keep irregular hours for cooking and cleaning may be a good candidate. Any household where the occupants are night shift workers is another common group that makes use of this off-peak saving. And in today’s era with many professionals basing themselves from home, there’s a whole new segment of people that can be around to get these duties done before the busy peak night period - even if that means cooking early. Stay-at-home parents can also alter their activities to make use of this arrangement.
Do you like proactively taking advantage of deals and savings?
Are you the type of person that simply wants to get signed up to a trustworthy energy retailer, get your power, and get on with life? That’s totally cool, and many Kiwis are in the same boat. But maybe you’re the sort of person who enjoys finding the opportunities for savings in your expenses. With the cost of living on the increase, more of us are being forced to think a bit more practically about each cost we incur.
As you look for the right power retailer that puts more control in your hands, look for ongoing savings opportunities, deals and plans that’ll suit your household budget. These savings are different to sign-up bonuses, offering you long term opportunities to save. Given power is an always-on expense, it might be best to find a retailer that’ll put the tools in your hands to save more money in the long run, as opposed to shiny sign-up offer. For some retailers this may be a period of time in which power is very cheap or ‘free’. For others these ongoing savings could be unlocked through solar buy back. Powershop does something a little bit different again with ‘The Shop.’ By using our Shop, you can buy ‘packs’ of power that can be used straight away or in the future when you’ll need the savings. It’s a model for paying for power that the proactive savers amongst us get real benefit (and enjoyment!) from.
As you compare different power retailer options, make an effort to dig a bit deeper than advertised promotions - what will the savings be like long term?
What size of household do you have?
Comparing power companies requires a number of different data points in order for retailers (and comparison websites) to properly estimate what you may be paying if you sign up with them. This headcount helps to work out how much power on average you’ll be using - we don’t expect you as a family to know your personal energy demands! If you’re given the opportunity to provide the size of your household in each retailer’s estimate tool, do so. There may be savings or additional costs based on the demand (even with the low and standard daily rates mandate being phased out broadly).
Do you need to be able to stop engaging with your utilities company at a moment’s notice?
These days, the last thing people want to do is get locked into a contract. The competitive nature of utilities means that we’re typically not very keen to be stuck paying a company even if we’re not happy with what we’re getting back in return. Power companies know this and that’s why most retailers offer no contract deals. Some power companies will have contract deals and no contract deals - the idea being that with a 12+ month commitment, they can guarantee a certain amount of value from you as a customer and thus will offer savings (such as sign-up bonus or daily rate).
If you’re like many in New Zealand, life moves quickly and things change without warning - needing to leave a rental property, going on an OE, or simply wanting to take advantage of a better deal. If that’s the case for you, opt for a power retailer plan that lets you walk away at any time. Of course, you’ll need to pay up all your power used, but beyond that many retailers should make it very easy to move - the power should be in your hands!
Is good customer service important to you with a power company?
Sometimes it can be difficult to immediately quantify what makes a power company better over another if they’re both supplying electricity reliably and the costs are generally the same. In this industry, after price, the difference maker is often in the detail around the power supply itself. That includes the way you pay, the online platform and importantly, the customer service from the retailer you receive.
We believe very strongly that Kiwis deserve friendly, supportive and respectful communication with us. They rely on us to ensure their households keep running and we feel that to offer anything less than excellent customer service is not an option.
If you’re the type of person who values speaking to real people easily and getting genuinely helpful support, then you’ll want to make sure your power company can provide this service. Check out the reviews of each power company and look for insight into their customer service. You can also check out certain consumer review websites for official ratings.
One of the tricks you can try out to test out the company is to call up and simply ask about what the retailer offers you - they’ll ask a number of questions and should be able to answer any you have too. You aren’t obliged to commit in this call - but it’s an excellent way to get a sense of what that company is like to deal with.
Will you use the mobile app?
Do you like managing your household and bill payments from the convenience of your mobile phone? Most retailers should have a dedicated iOS/Android mobile app to make this easier. Not all apps are created equal however, and each will have different functionality and user interfaces.
If you’re big on the UX of a mobile app when it comes to utilities, then it may be a good idea to look for demos of the mobile app on the retailer’s website. This might be screen grabs. It may be hard to simply download the app without being a customer, but if you’re signing up to a power company without a contract, you may wish to give them a go for a month and use this time to test out things like the mobile app. 
The mobile app for any retailer needs to be easy to use. Oftentimes we’re on the move in between a meeting or errand and simply checking our usage or paying our bill. It should provide you all the information about your account and make it easy to update your details. The mobile app should also be able to help you control any special feature of that retailer offers with regards to usage management or savings.
Along with the mobile app, look for the online web portal version (often accessible via a log in in the top navigation bar of their website). This should offer all those same features as the mobile app on a computer. You don’t want to be spending ages working out where to go and what to do - ease of use is important!
Are you generating power off solar panels?
If you’re living in a part of the country where you’re able to generate electricity off solar panels attached to your roof, then you’ll already know the savings to the monthly electricity bill that can offer. But it may also be the case that you’re generating enough solar energy that you can drop the excess back into the grid. This solar ‘buy back’ is something that you should look for in your retailer research. The power company can offset this energy from your power bill - meaning you’re actually saving in two ways - you’re using solar for a certain amount of power needs, and you’re selling it back to the grid when you don’t need it.
This is a good option for a home where the solar installed is used by the home as it’s collected, but there’s not a large capacity battery for storage. These types of homes will use the grid’s power at night or during poor weather with low sunlight.
Check if your current electricity plan is giving you the best price
Are you getting the best possible price from your existing electricity retailer and plan? It’s important to check this periodically as retailers frequently update their plans and offerings, while allowing existing customers to stay on ‘legacy’ plans. You should determine what your daily rate is, along with your per kWh rate. We’d suggest not only comparing this to other retailers in the market, but to other plans within your current retailer as well.
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