Did you know Kiwi’s collectively spend around $400 million every year on unused mobile data? Shocking, right? Well, Kiwi Mobile is here to put an end to this madness and save you money with our innovative mobile plan.

Research shows that on average, Kiwis on post pay plans have about 6.7GB of mobile data unused every month. That’s a whopping 72.4 million gigabytes going down the drain annually. More than half of us (59%) are paying for more data than we actually need, and it’s no wonder that 68% of us want more flexibility in our mobile plans.

The Solution: Kiwi Mobile’s Choice Plan

Kiwi Mobile’s CEO, Luke Blincoe, has had enough of Kiwis being ripped off by inflexible mobile plans.

The current plans in the market are designed to make us pay for more data than we need, even the so-called ‘rollover’ plans.

Kiwi Mobile’s new plan is here to change the game.

How It Works:

Basically it’s one plan, that’s all the plans. You start with a 5GB max speed data allocation, then if you run out you can either use slower data (1.2Mb/s) for the rest of the month, or level up to the next tier (10GBs) to keep using fast data. You can keep levelling up all the way to 100GBs of max speed data. 

So if you need more fast data this month, go for it. If you don’t, that’s cool, you won’t need to pay for it either. Of course you can automate all of this easily in the snazzy new Kiwi Central app.

“It’s like being able to upgrade your plan whenever you want without the hassle of actually doing it several times a month,” says Luke. You only pay for the higher tiers on the days you use them, so no more getting ripped off or worrying about running out of data.

Transparency and Savings

We’re shedding light on the confusing tactics used by traditional telcos. These companies often encourage us to pay for more data than we need because it costs them very little to provide it. 

For example, if you’re on one competitor’s $65 endless plan with 15GB of data but only use 9GB, you still pay the full amount. With Kiwi Mobile, you’d only pay $44 for 9GB.

If you need 15GB, you pay $49, and if you go up to 89GB, you still only pay $61. You can use up to 100GB of max-speed data without breaking the bank.

No Hidden Costs, No Sneaky Fees

Following the Commerce Commission’s guidelines, Kiwi Mobile’s Choice plan has no hidden costs or penalty fees for leaving. Including sneaky notice periods.

A Brand You Can Trust

Kiwi Mobile is brought to you by Electric Kiwi, one of New Zealand’s most-loved power and broadband brands. So customers can expect the same award-winning service and customer support with wait times under a minute. Kiwi Mobile operates on 2degrees’ mobile network, covering 98.5% of the places where Kiwis live and work.

Join the Revolution

“We are fired up,” says Luke. “We intend to really bring the challenge to the big guys, and our goal is that Kiwis are the benefactors of that.”

Ready to stop wasting money on unused mobile data? Check out Kiwi Mobile today and start saving!

Data on wasted gigs based on research commissioned by Kiwi Mobile and conducted by Perceptive in 2024.

Comparison based on competitor’s 15GB Endless data plan $65/month (15GB at Max Speed) taken from thier website on 11.7.24 and compared to Kiwi Mobiles Choice Plan. Monthly Kiwi Mobile price rounded to the nearest dollar, and estimated assuming max speed data usage is spread equally across an average monthly data cycle (30.42 days). Kiwi Mobile Choice Plan Max speeds up to chosen data tier allowance (to 100GB per month), then Endless data at reduced max speeds of 1.2mbps. T&Cs and Fair Use Policy apply.

Flexible, fair, and designed to save you money. That’s better.

The post Why Kiwi Mobile is shaking up the mobile industry appeared first on Electric Kiwi Times.

Electric Kiwi has made the decision to stop accepting new electricity customers due to extremely elevated wholesale energy prices. This also means that, for now, only existing customers can join broadband with Electric Kiwi.

Wholesale energy prices have increased by 73% in the past 6 months^* and current wholesale energy futures prices (these are the products that we buy in order to supply energy to our customers) have now reached a point where every new unhedged customer would be loss making for our business.

Obviously we are very disappointed. Electric Kiwi entered the market to make it better for Kiwis. Over the years we have saved Kiwi families millions, and brought heaps of innovations to market (from time-of-use plans, to the Hour of Power, the green meter and more). We’re gutted that we are now turning customers away.

What the hell is going on?

The wholesale market in NZ electricity has been a basket case for years. Wholesale prices have been steadily rising, and calls from us and others for market reform have fallen on deaf ears. In 2023 we raised a complaint with the Commerce Commission regarding misuse of market power in New Zealand energy markets.

The Commission agreed there was an issue but passed responsibility for resolution to the Electricity Authority who have the policy tools to quickly enact market reform. Commissioner John Small has stated^ “The wholesale electricity market is of real concern…we think it’ll be much faster [to work with the Electricity Authority] than dragging four or five big companies through the courts for three years and then be told that three years ago what you did was illegal. That doesn’t solve anything”.

Yet what has the Electricity Authority done to address this urgent problem? A year on and nothing has happened.

When we raised the complaint in 2023, the ASX baseload futures prices for calendar years 2024 and 2025 were around $165, this is now $298 and $277 respectively. If that is not evidence of something being properly stuffed, we are really not sure what is. And that’s before you take into account that during peak demand periods (mornings and evenings when we’re all using the most energy) prices can be multiples higher.

Below is a graph showing the wholesale prices since 2013. As you can see the upward trajectory is pretty full on and futures prices increased 17% just last week. And all of this is happening while the big four Gentailers (Mercury, Contact, Meridian and Genesis) make record profits. In FY22 they made $1.9bn, in FY23 they made $2.2bn and all indications are that they’re on track for even more massive profits in FY24.

^John Small, “Nine to Noon” interview by Kathryn Ryan, Radio New Zealand, July 24, 2024.

Chart shows the average annual baseload prices at the Otahuhu node (north island reference node). For the period Jan 2013 to June 2024 actual spot prices have been used and for the period July 2024 to Dec 2025 the current ASX futures price has been used (as at 15 July and 23 July 2024)

We are not the only ones screaming out for change. NZ is in a great position to provide green energy at reasonable prices for Kiwi households and businesses, which would encourage further investment in our economy and keep NZ the best place in the world to live.

A market controlled by a few players (the big four gentailers), who are highly incentivized to keep supply tight – and who hold all the power when it comes to providing energy during those critical peak times – is not going to get NZ where it needs to go.

In the end, these wholesale prices are passed through to Kiwi households and businesses. So we should all be pissed off, and we should all be demanding action.

So what’s next?

For the benefit of all Kiwis, something has to be done. We have informed both the Electricity Authority and the government on why we have taken this decision. And we hope this time that they have a mind to do something about it.

In the meanwhile, we will stay closed to new electricity customers.

FAQs

Why are you not accepting customers?

The wholesale price of energy, that is one of our biggest input costs, has reached a point where it is no longer commercially realistic to continue to acquire customers. For every existing customer we have, we have locked in some of our future input costs, but we need to keep buying forward contracts for those customers (to cover their future energy use), and these prices are extremely high.

If I am an existing Electric Kiwi customer, can I still move house?

Yes. If you are moving, you can do this via the app, or your online account. If you have a unique situation (e.g. you are moving, but a new person is taking the account), just jump on chat and we can sort this out for you.

Can existing customers still join broadband?

Yes. You can do this via your online account.

Can new customers join broadband?

No. At the moment we only allow people to join broadband if they have power. This is a technical restriction that we are planning to resolve. But for now that means that only existing customers can join broadband.

How long will this continue for?

It’s hard to say. At this point we are assuming it could be a month or more. But if things stay the same or get worse it could be longer. You never know, the government and the Electricity Authority might decide that it’s time to finally do something about the broken wholesale market?!

^*This refers to Calendar year 2025 futures price increases over the past 6 months.

The post Why is Electric Kiwi not taking new Electricity customers? appeared first on Electric Kiwi Times.

The Notice Period Challenge

Currently, broadband customers looking to switch often have to give 30-days notice or pay a fee to leave. You might think this is just the norm, but we don’t understand why this is necessary. We don’t have notice periods in energy. If you want to switch you can do so within a couple of days. We think notice periods are causing unnecessary complexity, especially when people are moving house.

Moving House Hassles

Moving is already a headache, and a 30-day notice period just adds to it. If you don’t plan more than 30 days ahead, you end up dealing with the internet stuff twice. First with your old provider and then with the new one after the move. This almost feels like a trick to stop people from thinking about changing providers when they move, which we know is a key time that customers shop around and look for better deals.

Double Charges and Worry

If you don’t know about the notice period and switch to a new provider, you might get charged twice. It’s the last thing that people want to deal with when they’re trying to save money by switching retailers. It also makes people worry about whether they’ll be double-billed. To help our customers avoid this, we set up our system to default to a 30-day switch. But, we’d much rather you could switch on the day you wanted to without any of this sneaky stuff!

The Customer Journey

Last year, we commissioned a survey into Broadband switching in New Zealand. It showed that switching isn’t always a breeze:

• 50% had to tell their old provider 30 days before switching
• 20% had to pay extra fees
• Almost half found the whole process daunting.
• 66% had to talk to their old provider to get things moving
• 25% had to contact their old provider more than once after stalled transfers
• Preparing meals early during off-peak or shoulder periods, as appliances like ovens and kettles consume considerable power.
• Avoiding the use of power-hungry appliances during peak times and using Wi-Fi switches to turn them off.

Despite these challenges, 90% of people were happy they made the switch, showing that a smooth process is crucial.

Because of these issues, Electric Kiwi has formally complained to the Commerce Commission, asking them to look into why notice periods are necessary for internet providers. We think getting rid of them would make things easier, encourage fair competition, and make customers happier. We’ll keep you posted on how things progress.

While the Commerce Commission is still looking into the problem, we’re not just sitting around twiddling our thumbs. After all, we wouldn’t be Electric Kiwi if we don’t do something cheeky! Here’s a comic strip we made which you’re more than welcome to use when you decide to break up with your Broadband provider – or any provider, really.

The post Breaking Up with Your Broadband Provider Shouldn’t Be Hard to Do appeared first on Electric Kiwi Times.

Electric Kiwi believes that it’s time for the government to step in and address the excess profits these incumbent ‘gentailers’ are extracting from the electricity market.

Record-Breaking Profits Raise Concerns

The ‘big four’ gentailers have seen their profits soar since the onset of Covid-19. Year after year, they have reported record earnings before interest, tax, depreciation, amortisation, and fair value adjustments (EBITDAF), totaling a whopping $2.61 billion in 2023, compared to $2.28 billion in 2022. To put these numbers in perspective, that’s over $7 million in profits every day, while many Kiwi households struggle to make ends meet.

What’s even more alarming is that these gentailers’ wholesale profits, derived from electricity generation, now surpass their company-wide profits. In 2023, wholesale profits reached a staggering $2.64 billion, exceeding the total company-wide profits. This shift has occurred due to two key factors.

Squeezing Competition through Subsidies

Firstly, the ‘big four’ have leveraged their market power to maintain high prices in the wholesale electricity market. This has allowed them to extract substantial profits from generation activities. Secondly, they have shifted profits from their retail businesses to their wholesale arms, essentially subsidising their retail operations with the excess profits generated from electricity generation.

For instance, Genesis reported a retail profit of $172 million just two years ago, significantly higher than its wholesale profit of $144 million. Fast forward to today, and Genesis’s wholesale profit has ballooned to a record $520 million, while its retail business is operating at an $11 million loss. Sadly, these drops in retail profits have not translated into savings for customers but have instead fueled the wholesale business.

The Impact on Competition and Innovation

The consequences of this profit distribution scheme have been dire for competition and the retail market. Over the past five years, more than 20 small and independent retailers have exited the market. Without healthy competition, consumers can anticipate rising prices and declining service quality. History has shown that innovation and improved service often emerge from new entrants, but the incumbents, whose profits derive from generation, have little incentive to drive meaningful improvements in retail.

A Call for Government Intervention

Electric Kiwi firmly believes that it’s time for the government to take bold action. One approach would involve divesting some of the generation assets from the ‘big four,’ leveraging the government’s 51% ownership stake in Genesis, Mercury, and Meridian. This ownership stake, originally intended to protect New Zealand consumers, has been used more like a stealth tax. It’s time to put it to better use for the benefit of all Kiwis.

Another option is for the gentailers to divest their retail businesses, forcing them to stand on their own without subsidies from their wholesale operations. Similar actions have been taken in the past, resulting in more competitive markets, as seen in the telecommunications sector.

We have lodged a complaint with the Commerce Commission under Section 36 of the Commerce Act. The Government made changes to section 36 of the Commerce Act earlier this year that make it more straightforward to identify a case for misuse of market power. We’re using this new provision because the Electricity Authority has failed to act decisively on any of these problems, but we have some confidence that the Commerce Commission will take the issue seriously.

At Electric Kiwi we are not afraid of competition, and we know a level playing field is exactly what the big four gentailers are desperate to avoid. We will keep fighting this, and in the meantime working on how we make it better for you and for our country. Government intervention, through measures like breaking up the gentailers, is necessary to restore competition, lower prices, and promote innovation in the market. It’s time to prioritise the needs of Kiwi households over corporate profits.

The post Big Four Gentailers Profiting at the Expense of Kiwi Households appeared first on Electric Kiwi Times.

We have always agreed with Consumer NZ that all of the costs of running this important service should be provided by the Energy Authority. In our view, asking an independent comparison service to ask retailers for fees, stops them from being a public service and turns them into a commercial operation. They have not yet achieved that funding goal, but we are hopeful that the Energy Authority has been listening, and will value the service that Powerswitch provides to fund it properly in the near future.

Great news, we have resolved our differences regarding fees with Powerswitch and we are back on the site.

There is still work to do on the Powerswitch site, especially when it comes to innovative time-of-use plans, and while we are encouraged by what they are saying, we will keep the pressure on to make sure that this service delivers transparent and useful insights to Kiwis on power prices.

Why care about load shifting?

A big point of contention is the way that Powerswitch shows time-of-use plans like MoveMaster.

Time-of-use (TOU) plans have different prices at different periods of the day. It may seem simpler to have flat rates, but wholesale power costs differ throughout the day, based on demand. TOU plans are designed to have more expensive pricing during peak busy times, such as 5-9pm, when everyone gets home from work and demand peaks, and cheaper prices at off-peak times, when fewer people are using the network.

Unfortunately, at the moment, TOU plans have savings significantly understated on Powerswitch compared to the average savings that customers on these plans actually see. They also ignore that the savings possible can be much larger than the average if customers take action to shift their power to cheaper times.

This mismatch provides a commercial barrier to this important evolution to power prices. ‘Peak prices’ are becoming ever more expensive over time and increasingly difficult to hedge (buy in advance). This is a big issue in the NZ market and it risks major increases in Kiwi’s power prices if it is not dealt with. The good news is that we are well placed as a nation to deal with it – we just need the industry to create smart solutions, and for consumers to understand their role (happily it does not take much).

TOU plans, like MoveMaster, that incentivise customers to shift load from these expensive times, are a great start. As well as saving customers money on their power bills, peak times are when we tend to use generation that causes worse outcomes for our climate. So if we can move more power off-peak, then we can simultaneously reduce power costs and create better outcomes for the environment. It’s not often we get a climate win without some associated downside, so this is a real winner!

So what now?

TOU plans are becoming ever more important as we start to see more electrification, especially the rapid uptakes of EVs, so it is important that the industry helps to promote these plans.

Powerswitch are currently conducting research into this issue, and claim to have improvements on the way. There is a balance between conservatively telling people what they could save based on a median (e.g. less than the average), but also educating customers about what is possible if they make a few simple changes to their power use.

Kiwis with pools or spas can automate their load to be off-peak; we can all try to use the dishwasher, dryer or washing machine off-peak; and if you are an EV driver, it is very important that you charge your car off-peak as much as possible (this includes public chargers, who disturbingly give no price signals at all to the market on time of day). We have already conducted a trial automating hot water heating to off-peak hours, saving our customers money with no downsides to the availability of hot water quality, and we are looking to roll this out to a much wider group later this year.

We all need to do our bit, and we challenge Powerswitch to play their role in the energy transition, and to get this right for Kiwis.

The post We are back on Powerswitch appeared first on Electric Kiwi Times.

We’ve been upfront about wanting to make things better for all Kiwis, not just our customers. We’re not afraid to call out the big guys or the industry in general when needed. We’ll take this award as a sign that our customers believe we’re on the right track. We walk the talk and deliver a no BS approach – apparently, just how our customers like it.

You may come across the question “Who’s the best power provider?” from time to time. Some may assume it’s about the battle of the cheapest, or interpret it as a question as to who’s the most reliable. In terms of the actual power itself, no matter which company you’re with, they’re all of the same quality. Electricity all comes from the same grid – which means if you’re experiencing a blackout, chances are your neighbours who are with other electric companies are out of power too. So when you’re looking for a power company, you might as well choose a business that provides the best power plan for your household and also comes with excellent customer service!

One of the ways we are trying to ‘make it better’ is with our time-of-use plan, Movemaster. We’ve been pretty vocal about the importance and benefits of load shifting, which we think is one of the most important ways our customers can support the energy transition and help to keep power prices lower for all kiwis. The MoveMaster plan offers cheaper off-peak rates, as well as half price power overnight (11pm – 7am) so it’s ideal for households that charge EVs, use heat pumps overnight, or simply want to save money by shifting their power usage.

We’re stoked to win this award. Apparently, the no BS approach really works for our customers.

As well as being rated the best of the bunch for customer satisfaction, we’re also keen to make things fairer for customers so we don’t have any contracts, exit fees or sneaky notice periods. You can also bundle your broadband with us and get quality service for both power AND broadband. (Yes, we also provide broadband. And yes, we also won an award for that this year!)

What’s the Canstar Blue award all about?

Canstar Blue is a professional research agency that helps consumers make better purchasing decisions. They ask for feedback about their experiences and translate those answers into star ratings. This feedback comes from a group of consumers that represents the general population in New Zealand. This year, Canstar Blue surveyed 5046 New Zealand customers, and the outcomes reported are from respondents who pay bills on an electricity account, in this case, it’s 3319 respondents. So, it’s not just about popularity, but a real measure of how people feel about their service providers. That’s why we think this award is very important.

It is Electric Kiwi’s third win of this award, which is a testament to our consistently excellent customer service, according to Canstar New Zealand General Manager Jose George,

“It’s brilliant to see Electric Kiwi taking home this win again – they’re a great local company, and their repeated wins of this award show they offer consistently excellent service. Congratulations to the team!”

The post We’ve claimed the coveted crown of Canstar’s Most Satisfied Customers award for electricity! appeared first on Electric Kiwi Times.

We’ve been making things better in the energy market for almost a decade now – but Canstar Blue’s Most Satisfied Customers Award for bundled utilities comes barely 12 months after we launched our broadband offers. Quite a result!

We’re now on a mission to make broadband better for consumers – and this recognition only seems to confirm our view that Kiwis are hungry for change in the telco space.

The old energy dinosaurs mostly got three and four stars across the board. Mercury, Contact and Genesis all received four stars for overall satisfaction, with Trustpower and Slingshot scoring three stars.

The results are based on a survey of more than 680 Kiwi households who have the same provider for both their power and broadband. Full details on Canstar Blue website.

Topping the Canstar research earns us this sweet award, so sorry (not sorry) if you start seeing it all over the place!

We’re the only retailer to get five stars for value for money, customer service, tools & advice, environmental sustainability and overall satisfaction.

Turns out Kiwis want no BS broadband – who knew?

“We’ve had a great reaction since launching our broadband offers, from existing energy customers as well as those who have joined us for the first time,” says Electric Kiwi CEO Luke Blincoe. “Just like we have done in electricity for a while now, we’re fully committed to making broadband better for Kiwi consumers by cutting out the crap of contracts, arbitrary fees, and nonsensical notice periods that seem to be designed to discourage households from
switching.

“Our own research shows that contracts, exit fees and notice periods are preventing customers from switching to better deals, all of which works in the interest of the old-fashioned brands, who have a history of openly relying on confusion as their chief marketing tool. Those who have gone ahead and switched in recent years are overwhelmingly pleased they did, however, and we’ll continue to work on making the process as easy as possible, whether the big telcos are interested or not.

“You get none of the BS with us, just fair prices that are charged by the day, so you will only ever pay for what you need. There’s no trousering an extra month’s fee if you need to leave us. That’s just the fairer way of doing things.

“We’ll take this award as a sign that we’re on the right track. We value every customer who is with us for energy, broadband, or both, and thank them for their support.”

What’s the Canstar Blue award all about?

Canstar Blue is a professional research agency that produces customer satisfaction ratings across hundreds of products and services in Australia and New Zealand. They do this by surveying a panel of consumers and asking them
about their experiences in the relevant categories. The feedback they receive is translated into the star ratings you see in the table above.

Their research is based on a representative sample of the Kiwi population, so it’s not a popularity competition but a genuine reflection of how consumers feel about their service providers. That’s why we value this award so highly.

The Canstar award adds to our recent success in picking up the NZ Compare People’s Choice Award for Power, as well as the Gold Readers Digest Quality Service Award for Energy Providers.

Canstar NZ General Manager Jose George says: “Bundling household utilities can provide notable benefits for the consumer, including value and service. However, it’s still important to choose the right provider for your needs.

“Electric Kiwi’s award win, in its first year providing broadband, is impressive. It has long rated well for electricity and consumers gave it five stars across all drivers of satisfaction, including service and cost clarity. We congratulate the team for their achievements in an extremely competitive space.”

So… wanna broadband with us?

There are lots of reasons to consider joining EK for energy and broadband, or adding broadband to your existing electricity account. There are no contracts, exit fees or notice periods (we hate them), and our broadband comes
with daily rates, so you’ll only ever pay for what you need. You can bring your own device for broadband, or get the sweet Orbi modem we provide at no extra cost.

There are two fast-speed plans to choose from. Get all the details here and jump onto live chat if you have any questions.

The post Best for bundles ALREADY? EK picks up award for energy and broadband appeared first on Electric Kiwi Times.

We’ve been working hard to improve the energy industry to the benefit of Kiwi households and businesses for several years now – with plenty of success – and now we’re determined to make things better in broadband, too.

Our primary concern is notice periods. Customers usually have to give 30 days’ notice when they intend to leave, or at least notice until their next scheduled billing date. We believe these notice periods are designed to discourage switching because they create anxiety among consumers, and the general feeling that it’s all just too difficult. If you’ve remained with your broadband provider and tolerated high prices and poor service for years without leaving, you’re certainly not alone.

Notice periods are clearly a barrier to switching (we’ve done the research to prove it, below) and therefore undermine what’s supposed to be a competitive market. They’re not necessary in energy and we’re convinced they have no place in broadband either. That’s why we don’t charge in advance and don’t have contracts or notice periods.

But we know we face an uphill battle, because the processes we’re talking about work in favour of the incumbents. As one challenger telco put it to us when we contacted them about our intentions, “you can’t change anything without the support of Vodafone, 2degrees and Spark”.

Well, we accept the challenge.

We believe notice periods are designed to discourage switching because they create anxiety among consumers, and the general feeling that it’s all just too difficult.

What are we going to do?

Our intention is to advocate for change, but also to amend our own processes so that incoming customers get the best switching experience they can based on which telco they’re leaving (this includes making sure customers are aware of, and hopefully avoid, any fees they may incur from their old provider). We firmly feel that process improvement is in everyone’s best interests, most importantly consumers who should be able to switch providers quickly and easily without fear of losing their service or having to pay unnecessary costs.

We’ve reached out to all major telcos in New Zealand to seek their cooperation on this – and to see if they want to join our campaign to end notice periods – but we’ve received lukewarm responses at best from most of them. The worst of the bunch have point-blank refused to engage with us at all. A notable exception is Trustpower who seems to share our broad concerns with notice periods, though we may differ slightly on the specifics, and that’s OK.

The industry body that represents telco companies, the NZ Telecommunications Forum (TCF), doesn’t see a problem with notice periods because they provide a point of difference between retailers. Well, they’re not wrong there…

We already know many customers hate notice periods. The challenge for us is to convince the industry that change is needed because we think it’s in the best interest of consumers no matter which telco they’re with or switching to.

Why change is needed

We haven’t been involved in broadband for long, but we already know that many Kiwis are clinging onto their old telcos because switching just feels too difficult. This means they could be missing out on cheaper prices, better service and superior internet performance. Like we said, notice periods are in the best interest of the retailers, not consumers…

We surveyed about 1,500 adults to ask about their experience switching broadband providers, or to get their reasons for not doing so (we commissioned market research agency Pure Profile to do this on our behalf in August).

We found that 44% of households have switched providers in the last three years, leaving 56% who haven’t. While the majority of those who haven’t switched said they’re still happy with their current telco, a significant one in five (21%) admitted that the process of switching is too daunting. A further 12% said they haven’t switched because they’re under contract and don’t want to pay exit fees.

Of those who have gone ahead and switched, most did so in search of cheaper prices (66%), about one in three (35%) said internet performance was a reason and 20% were fed up with the customer service and general experience of their old provider.

Crucially, 47% of survey respondents who switched admitted that they would have done so sooner if it wasn’t for notice periods and the process in general. This is epitomised by the fact that one in four (25%) said they were charged more than expected by their old telco.

The good news is that 90% of switchers ultimately said it was worth the effort, and fewer than 50% would consider returning to their old provider.

Our point, of course, is that switching shouldn’t be an effort in the first place. Switching should be easy. It encourages consumers to engage with the market and forces retailers to up their game in respect of price, conditions and service. That’s why the big guys will fight it, and why we’re certain we’re on the right track.

The post Broadband notice periods need to go appeared first on Electric Kiwi Times.

I’ve never been more convinced that now is the time for the government to act and introduce long-overdue industry reforms, especially as consumers continue to face high energy bills and other cost of living pressures, while the big gentailers rake in the cash.

• Genesis reported its highest operating earnings of $440m since it was established two decades ago. Its net profit was up by 600% to $222m compared to $32m last year.
• Mercury reported it had more than tripled its net profit to $469m.
• Meridian’s net profit was $664m, up 55% from $428m last year.
• Contact made a profit of $182m, down slightly from last year but 50% above the profit they made in 2020.

All up, the big four’s net profits nearly doubled in the last 12 months, rising from $788m in aggregate to more than $1.5billion.

To put those numbers into perspective, Meridian’s profit went up by $640 for each of its retail customers. That’s money we reckon would be better in the hands of Kiwi families and businesses.

The time has come for the government to be bold and adopt the structural reform needed to ensure more cash is kept in the hands of Kiwi families and businesses, not these bloated corporations.

What explains the record profits?

The record profits have nothing to do with providing better value services to consumers. It’s all about leveraging their legacy generation assets and record wholesale prices.

Collectively the big four earn over 95% of their EBITDAF (that’s what the accountants refer to as earnings before interest, tax, depreciation, amortisation and fair value adjustments) from their wholesale businesses. Contact and Mercury’s wholesale businesses both earnt more than their entire operations, meaning the rest of their business was run at a loss.

Wholesale electricity prices – the price gentailers get paid for generating electricity and supplying it to the national grid – have been at record high levels since 2018.

In the last year, wholesale prices averaged $176/MWh. The average was $166/MWh over the last two years. The industry regulator, the Electricity Authority, has looked at the numbers and couldn’t explain the $40/MWh excess. The Authority has been somewhat cautious in its views because it has only reached preliminary conclusions, but commented that “we observed some evidence to suggest that prices may not have been determined in a competitive environment”.

These prices contrast with an average price of $75/MWh from 2012 to 2018.

Using generation assets to shield profits from competition

While the big gentailers are making record profits, the independent retail sector has all but disappeared, with 12 retailers exiting the market in the last three years, taking with them any meaningful retail competition.

That’s because there has been a shift, with gentailers now earning most of their profits from their generation businesses.

This is off the back of the generation assets they inherited, built by our great-grandparents for the benefit of all Kiwis. That’s why the sector is in a situation where Genesis announces record profits but is still going to increase retail prices for households. Using generation assets to shield profits means new retailers won’t be able to compete by offering lower prices for households and businesses. That’s good for gentailer profits but bad for competition and bad for consumers.

Up until now, smaller business consumers and households hadn’t seen the impact of the record profits and wholesale prices with these increases being mostly offset by reductions in the regulated prices the Commerce Commission sets for the electricity networks that transport electricity to the consumer’s front door.

Retail competition is being hurt

As an independent retailer, Electric Kiwi has been on the receiving end of these pricing arrangements. Record high wholesale prices have squeezed our margins and forced us to increase prices to our loyal customer base. That’s the last thing we want to do. It has also meant we haven’t been able to take on as many new customers as we would like.

We have prided ourselves on being a price leader and saving our customers over $34m in the last seven years.

Electric Kiwi and other independent retailers have been calling for the Electricity Authority to undertake price squeeze testing common in other jurisdictions. Price squeeze testing would determine whether the gentailers’ retail arms would be profitable if they had to compete on the same basis as the independents and weren’t propped up by their generation business profits.

So what needs to be done?

The government eventually got fed up with Telecom’s antics. Wholesale price regulation was introduced, and the government forced Telecom to split its wholesale and retail businesses into Chorus and Spark. We may see similar intervention in supermarkets. The government is introducing a new supermarket regulation run by the Commerce Commission. It’s also looking at whether to break up the supermarkets to provide more choice for consumers.

Electric Kiwi considers ‘what is good for the goose, is good for the gander’. The telecommunications reforms have been very successful and enabled new entry and stronger competition, driving down prices and resulting in far better service. There is no reason why consumers couldn’t benefit from similar reforms for supermarkets and electricity.

Electric Kiwi has long advocated for reform to deliver more competitive and affordable electricity for long suffering Kiwi households and businesses. Wholesale regulation should be introduced to ensure independent retailers can compete against the incumbents on a level playing field.

If the government wants to lower the cost of electricity, it needs to be bold and adopt structural reform, starting with breaking-up of the largest and most profitable gentailer Meridian.

The post Gentailers’ record profits confirm now is the time for industry reform appeared first on Electric Kiwi Times.

After seeing our energy plans removed from Powerswitch because we refuse to pay the unfair tax that Consumer puts on good value plans, we decided to gauge the opinion of about 1,000 Kiwis to see whether or not we’re in tune with what consumers would expect from the government-backed comparison service.

It turns out that most people agree with us that Consumer NZ’s current approach to generating funds from energy retailers is unreasonable because it sees the cheapest retailers in the market saddled with the greatest financial burden, while the biggest retailers charging customers higher prices get away with tiny contributions.

The survey findings also show support for Electric Kiwi’s view that Consumer NZ should be doing more to highlight the benefits of innovative energy plans designed to incentivise load-shifting to support the green transition.

Consumer NZ may try to dismiss these findings because they highlight where they are going wrong, but to do so would be to dismiss what normal Kiwis think.

We’ve been trying to help Consumer NZ understand where they can and should be improving Powerswitch to the benefit of consumers for some time, but these discussions have broken down and eventually led to our plans being removed from the site altogether. We’ve frequently asked them to consider our suggestions for alternative funding solutions, but we’ve been completely dismissed at every turn.

Consumer NZ’s refusal to take our concerns seriously has resulted in the ridiculous situation of this publicly funded service not showing consumers all plans in market.

That’s why we wanted to ask Kiwis what they expect from Powerswitch, and hope Consumer NZ listens to their feedback. That starts with restoring our plans on Powerswitch as soon as possible. If not, we hope the Electricity Authority takes notice and considers whether Consumer is the right party to be running this vital service. Given that Consumer was awarded the contract without a contestable process, we wonder if New Zealanders are getting the best value and service.

What did the survey find?

More than half of Kiwis (51%) who responded to the survey¹ said they have used Powerswitch to compare energy plans in the last 12 months. But whether they use the website or not, a whopping 96% of consumers agree that all retailers should be present on Powerswitch.

However, there’s a lack of understanding about how the website is funded, with just 40% of respondents aware that Consumer NZ receives money from the EA to run Powerswitch. And only 33% said they were aware that energy retailers contribute to the funding.

Consumers have recently made it clear that 75% of funding comes from the EA and retailers account for the final 25%. Our issue is that data from Consumer confirms that the few retailers with the best prices attract nearly 60% of the retailer levy. Recent data provided to us by Consumer showed that in June 2022, the top three retailers accounted for 58% of switches, and paid up to $155,600 in fees, while Meridian – state owned and NZ’s largest (by capitalisation) energy company – contributed at most $1,200!

What do Kiwis think?

When respondents were asked what they think the fairest way of recovering costs from the energy retailers would be, the survey found that:

• 36% think fees should be determined by market share, so the biggest retailers with the most customers contribute more than the smaller retailers.
• 26% think all retailers should pay an equal fee for appearing on Powerswitch.
• 20% agree with Consumer NZ that energy retailers should pay a fee for every customer who switches through Powerswitch, so the retailers with the cheapest prices make the greatest contribution.
• 17% said none of the above, or not sure.

We agree! Why should the cheapest retailers be saddled with the majority of the retailer-generated funding for Powerswitch, while the big guys with higher prices contribute so little?

What the current funding model does, is make it harder for retailers to bring good prices to market because they’re hit with a value tax in the hundreds of thousands of dollars a year.

Other retailers agree

Since conducting our survey of consumers, we’ve also discovered that other retailers are largely in agreement with us regarding Powerswitch, too. That’s because Consumer NZ conducted a survey of retailers to gauge concerns with the funding model and also to suggest alternatives. We contributed to this.

The survey found that a majority of retailers (67%) have concerns with the current funding model, while 75% would rather the switching fees are removed, and the EA provides all of the funding.

It should be noted, however, that only 12 of the 45 industry stakeholders who were invited to complete the survey actually did so, which in itself is a sorry reflection of the current situation.

How load-shifting plans are represented on Powerswitch

Electric Kiwi’s concerns about Consumer NZ’s running of Powerswitch extends to how time of use energy plans are represented. They have embraced a standardised, one-size-fits-all approach to the assumptions used to determine the annual costs displayed for plans that promote load-shifting with cheaper off-peak rates, rather than making an effort to highlight the real-world savings that can be achieved with such products.

Incentivising behavioural change around energy usage is not only beneficial for consumers through reducing bills, but is crucial in supporting the green energy transition as more off-peak usage means less reliance on carbon-generating electricity. Consumer NZ’s policy of sameness equaling fairness seems lazy and is certainly misguided. The majority of Kiwi consumers agree.

The survey found:

• 75% of Kiwis are interested in changing their energy usage habits to support the green energy transition.
• 83% believe Powerswitch should do more to highlight the potential benefits of energy plans that support the green energy transition.

When asked how energy plans that encourage customers to move their power usage off-peak, with the incentive of lower prices, should be reflected on Powerswitch, the survey found:

• 69% think an average (or mean) of the real savings achieved by customers on these plans should be shown.
• 12% said the average savings made through behavioural change should be ignored in the prices shown.
• 5% of these types of plans should not be shown on Powerswitch.
• 14% said none of the above, not sure.

The post Most Kiwis disagree with Consumer NZ’s approach to Powerswitch appeared first on Electric Kiwi Times.