What to ask before you sign up with a power company

What to ask before you sign up with a power company

15 September 2016

With more electricity brands than ever before, there are a lot of different offers out there. How do you know you are getting the best deal?

Carl Hansen, Chief Executive of the Electricity Authority says, “Electricity retailers are marketing hard, which means you may get sales calls or visits from different companies trying to sign you up.”

“Checking what your potential new retailer has to offer you is smart. Retailers are highly competitive with each other, so asking questions about the service they will provide you could save you both money and hassle in the future.”

“Here are some useful questions to ask.”

1) Contract length: Ask how long the contract is and if there is a break fee. If your circumstances are likely to change, such as moving house or having a baby, it’s worth thinking about whether the contract will still suit your lifestyle.

2) Payment terms: Most retailers offer direct debit and online payments, but it is worth checking what their billing cycle is. Some retailers are now offering prepay, weekly and smooth pay options. Choosing what is right for you is important. It is also helpful to know how you will be receiving your bill. Some retailers only offer their bills online.

3) Tracking your use: Some retailers are offering innovative app and online services to help you track your electricity use. If this is appealing, it’s worth checking what your potential retailer offers. Also, if you can change when you use electricity then look for retailers that offer low prices at off-peak times (11pm – 7am). Buying from these retailers could save you money.

4) Special deals: Finally always ask if a potential retailer has any special sign-up deals or offers for you for signing up over the phone might provide advantages you never knew you had.

5) Check with your current retailer: If you are happy with your current retailer, but a new brand is offering you a better deal, it can often pay to ring up your current provider and discuss how they might match the new deal.

New Zealand has a highly competitive electricity market with 31 different brands across the country and at least 11 brands available in every region.

For a free and independent view on what electricity deal is right for you check whatsmynumber.org.nz in your own time. It’s a fast and easy way to see if you could save money on your current power deal.

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