Not really, but it makes a catchy title.
Today we decided to change power companies. We’ve been with our current supplier for over 15 years and two addresses, and while we have no complaints about their service, we felt that as a long term customer we had been taken for granted and largely ignored.
I don’t know how electricity is provided in your locality, but here in Aotearoa New Zealand, it is a highly competitive market. A quick online search of suppliers in our region revealed we have a choice of 59 suppliers! Other regions of the country have more, while some regions have a little less less. Some suppliers generate electricity from 100% renewable resources, others have a mix of renewable resources and fossil fuels, and a few don’t do any generation themselves, but buy on the spot market. Talk about being spoilt for choice!
To make it even more complex, each supplier provides many plans for domestic consumers. Our old supplier has around ten plans, as does our new supplier. All up, I’m guessing we had a choice of well over 200 plans!
Power charges here are made up of three elements: cost per Unit (a Unit is 1 kilowatt hour); line charge (daily charge for connection to the power network; and Electricity Authority fee (the authority oversees and regulates the electricity market).
The electricity Authority fee is common across all suppliers, but the line charges and price per unit varies by as much as 50% between suppliers. Then there’s prompt payment discounts, loyalty card schemes and happy hour schemes. Some suppliers offer cheaper rates for hot water, or different day and night rates. Some guarantee a fixed price per unit and line charge fees for one or two years, others don’t. The choices are bewildering, which is why it’s taken so many years to actually decide to change.
Have we found the best deal? I have no idea. It would take far too long to crunch all the numbers. But we have found a much better deal with our new supplier. Our monthly electricity bill will be 25% cheaper than what we are currently paying, fixed for two years. We get a $100 credit for signing up with them, plus we get a 10 cents per litre (38 cents per US gallon, 45 cents per UK gallon) discount on petrol through a fuel card scheme we already belong to.
When we have been paying between $250 and $400 per month for electricity (depending on the season) on a household income of around $2200 per month, the savings are not insignificant.
Now that we’ve finally made the plunge, and found a good deal, I’ll need to seriously look at doing the same for our telecommunications supplier. How difficult can it be? After all there’s only about 70 suppliers and 500 plans to choose from.
On second thoughts…