Kiwis switch power companies in record numbers

New Zealanders have been switching electricity providers in record numbers. File photo / Thinkstock

New Zealanders have been switching electricity providers in record numbers looking for cheaper deals.

An all-time high 237,000 consumers switched companies in the first seven months of 2011, 35,000 more than for the same period last year.

The What's My Number television advertisement campaign seen on television is being credited with greatly influencing the increased switches.

The campaign is being run by the Electricity Authority in partnership with the Ministry of Consumer Affairs and Consumer New Zealand to show New Zealanders what their power savings can be if they shop around.

Electricity Authority chief executive Carl Hansen said today the campaign's goal was to enhance competition in the sector.

"A primary objective of the campaign was to increase competition in the market place, so it is excellent to see evidence of that."

An Electricity Authority's research paper said customer stickiness, or lethargy, in the New Zealand electricity market meant retailers generally charged prices that were above the most competitive offer.

Mr Hansen said he expected switches in electricity providers to drop-off again once competitors adapted their prices to a more aware consumer.

Statistics for consumers switching between electricity providers is monitored and recorded by the Electricity Authority.

- NZPA