Proactive electricity retailers lead the way internationally

For immediate release

Media release: New Zealand’s proactive electricity retailers lead the way internationally

3 March 2015

Latest international research shows New Zealand’s electricity retailers are competing fiercely for customers compared with those in selected overseas markets with competitive retail markets, but New Zealand consumers are relatively passive about exercising their option to choose between providers.

The Electricity Authority today released results from a survey investigating international consumer activity, behaviour and attitudes towards the electricity industry. The survey compares New Zealand to Australia, Texas (US) and Alberta (Canada)—these four regions have comparable cultures and competitive retail electricity markets.

Dr Brent Layton, Chair of the Authority says, “the results show New Zealand is at the forefront of promoting retailer switching and it is the easiest place in the world to switch. The competitive rivalry in the New Zealand retail market is significantly stronger than in the other markets we looked at. But, consumer switching activity is largely driven by retailers, not consumers.”

The research results show New Zealand consumers are most likely to be approached by electricity retailers about switching—69 per cent of consumers were approached at least once in a 2 year period, compared to 47 per cent in Alberta, the next highest.

However, when asked if they would proactively approach retailers to switch, New Zealanders rated as the least likely of all four jurisdictions, with only 35 per cent of respondents saying they would. This compares with 51 per cent of Texan consumers.

Dr Layton says, “it’s important for New Zealanders to keep their finger on the pulse when it comes to what different retailers are offering consumers. The What’s My Number website is a key tool for consumers to use to understand how much they could save on their power bill with another retailer. We’d like to see New Zealand consumers being a lot more proactive and we are currently working on ways of making it easier for them to do that.”

See how much you can save at www.whatsmynumber.org.nz/.

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Note to Editors

• The research was conducted by independent market research company UMR. 1,000 consumers were surveyed in each jurisdiction.

• New Zealand consumers are the most likely to be approached by electricity retailers about switching providers. 69% of New Zealanders had been approached about switching in the last two years compared to Australia (36%), Alberta (47%) and Texas (42%).

• New Zealand consumers are the least likely to proactively approach retailers to switch. 35% of New Zealanders had approached retailers compared to Australia (45%), Alberta (36%) and Texas (51%).

• 92% of New Zealanders say it is easy to switch retailers, compared to Australia (71%), Alberta (76%) and Texas (75%).

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