Power users go for switch

By RICHARD BRADDELL

WELLINGTON - Power consumers are on the move, backed by tough new compliance rules which put the heat on retailers to allow smooth company switching.

The largest-ever number of electricity consumers switched retailers in May, two months after new rules for transferring customers came into effect.

More than 19,000 customers switched, up from 6164 in April and only the second month in the competitive retail market's 14-month history in which customer switches have gone into double digits.

Lengthy delays, often of several months, and bungles in which customers changing supplier have been cut off have been among the issues considered by the Government's electricity inquiry.

But in April new rules came into effect and, from yesterday, a compliance regime backed by hefty fines.

From now on, electricity retailers who fail to switch customers to a new supplier within two working days and provide meter readings within 23 working days can be brought to account. The rules have been established by the Maria governance board, which governs electricity switching. Overseeing them is M-co, a company charged with administering the electricity market.

"It's likely that there has been a bit of a backlog as companies wait for the new rules. But 19,335 customers choosing to change retailer is a clear sign that companies are really getting their act into gear around the switching process," M-co chief executive Philip Bradley said.

In competitive markets overseas, around 5 per cent of customers have typically chosen to "churn," or change suppliers.

Despite the New Zealand market's bumpy start, after 14 months 6.7 per cent of the 1.6 million consumers have chosen to go to another retailer.