Julian Kardos: What every Kiwi should know about electricity in NZ

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Opinion

Just how much do you know about electricity in New Zealand?

For most people, electricity is just something that happens... and a bill, usually higher than hoped, that arrives at the end of the month. By knowing a little more, however, you can change how you view electricity forever - and save yourself some money while doing it.

Here are five things that Julian Kardos, managing director of Electric Kiwi, says every Kiwi should know about electricity:

1. We have some of the greenest electricity in the world (and some of the unhappiest customers)

Where most countries get the bulk of their power from coal-fired generators or nuclear stations, more than 75 per cent of all of New Zealand's electricity comes from renewable sources, including many hydropower and wind generators. Blessed with a combination of steep terrain, big lakes (mostly in the South Island) and the strong winds of Wellington, that means your electricity has a low impact on the environment, which is pretty smart. What isn't smart is that most New Zealanders aren't very happy with their electricity retailer. Electricity Authority (EA) figures show New Zealanders switch providers more than anyone in the world, apart from Belgium, with one in five hopping between providers last year.

2. It's a competitive market (and that means you can shop around)

Reckon you're stuck with your electricity retailer? And there's little difference between them? That used to be the case, but with increased competition in the market, there is more choice than ever before. It's a myth that consumers get a better deal bundling gas and electricity, when in fact it's cheaper to separate. New electricity companies leverage technology to create ultra-lean organisations which deliver superior customer service at lower prices. New retailers don't have complex systems from the dark ages. They don't have huge staff numbers. But they use cloud technology systems to create low cost, hyper-efficient organisations focused on delighting customers rather than annoying them.

3. Your meter is smart (but how clever is your retailer?)

Smart meters are crucial for these new electricity retailers. They provide up-to-date information which enables pinpoint billing accuracy. Because smart meters send electricity use information back to the power company, there is no need to manually read meters. Therefore the bill is far more accurate compared to those of existing providers who bill based on analogue model readings and estimates. Some 80 per cent of urban Kiwi electricity consumers have a smart meter in their home - but most don't even know about it. Even worse, some retailers don't use the capability of the meter at all.

4. There's more than $200-million in savings on the table

You read that right. The Electricity Authority has noted that New Zealanders are missing out on some $209-million in potential savings by not switching to the lowest priced plans available. That's a lot of money which can be spent elsewhere. And a very good reason to consider your options.

5. Switching is far easier than you think

Nobody likes paperwork; we can all agree on that. But switching providers doesn't have to be a hassle, particularly when dealing with online retailers with a highly refined signing-on process. First class customer service, which has been missing from the electricity industry since forever, is an absolute priority for new generation retailers and it's setting the benchmark for customer engagement.

Knowing these five things means getting your electricity can not only cost less - but also result in a far better customer experience from start to finish. Electricity is important to everyone. In today's market, getting it sorted can be a pleasurable experience which also leaves more money in your wallet. Just look for an online electricity retailer.