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Home / New Zealand

Carmen Hall: Don’t be afraid to change power companies to save money

Carmen Hall
By Carmen Hall
Bay of Plenty Times·
24 Jul, 2023 12:04 AM3 mins to read

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Power is something most Kiwis rely on, and it's a good idea to shop around for the best deal.

Power is something most Kiwis rely on, and it's a good idea to shop around for the best deal.

Carmen Hall
Opinion by Carmen HallLearn more

Opinion

I am a creature of habit. When it comes to paying for things such as rates, insurance and electricity, I like to make regular automatic or debit payments every fortnight.

I like to eliminate the stress of dealing with those big bills that can be troublesome if you opt to pay them monthly or yearly. I think paying this way makes sense. I could imagine myself, despite good intentions, spending that bill money if I didn’t have it set up this way.

However, being a creature of habit and not liking change that much, I was actually missing out on savings with one of my biggest expenses - the power bill. I did change my power company about three years ago after being with my previous one for longer than I can remember.

I opted for a debit payment every two weeks, but with the rising cost of living, I was becoming increasingly alarmed at how much was being deducted from my account. After some quick calculations of my own, I decided to use the PowerSwitch website about a month ago to see if I was getting the best deal.

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It lists 17 power companies so users can compare prices.

PowerSwitch manager Paul Fuge says an analysis of 42,000 user results over winter 2022 showed the median savings through changing power companies on PowerSwitch was $385 per annum.

All you have to do is put in your address and a power bill or bills and it is able to estimate if you can save money by switching.

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Needless to say, I was pleasantly surprised to see I could, and it practically took care of the rest, which included notifying the power company I wanted to switch to and letting my old power company know I would no longer need its services.

We reported last week that some people and pensioners are struggling to pay their power bills. In extreme cases, a few chose not to have electricity at all. Others were wrapping up in blankets or going to bed early to avoid heating their homes.

I find this appalling. I acknowledge the Government has stepped up with its Winter Energy Payment and spent $2.5 billion from 2018 to 2022, but there are still vulnerable people suffering.

This means potential health risks, and Toi Te Ora Public Health medical officer of health Dr Gregory Evans says old houses affect physical and mental health and increase the risk of respiratory disease, infections, heart attacks and strokes.

Seniors Minister Ginny Andersen says no one should fear catching a winter illness because they can’t afford to turn the heating on.

I agree, and while it is probably not feasible to throw more taxpayer money at this issue, I encourage people to shop around for the best power deal and make these companies compete harder for your money and lower their prices.

Carmen Hall is a news director for the Bay of Plenty Times and Rotorua Daily Post, covering business and general news. She has been a Voyager Media Awards winner and a journalist for 25 years.

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