Smart savers make switch

SWITCHED ON: Wairarapa power customers are getting smarter.

Wairarapa residents are becoming more savvy at switching power companies in search of a cheaper deal, a Masterton budgeting advisor says.

More than 46,000 customers in the Wellington region, which includes Wairarapa, switched electricity retailers last year, accounting for 21.4 per cent of all consumers in the region.

This was up on the previous year, when 41,114 Wellington households made the switch, representing 19 per cent of local customers.

Separate figures for the Wairarapa were unavailable.

Meanwhile, the average Wairarapa and Hawke's Bay power bill jumped $114.28 in the year to November 15 - a 5.4 per cent hike, according to the Ministry of Business, Innovation and Employment's quarterly survey of domestic power prices.

Masterton Free Advisory Service advocate Grant Howard said some Wairarapa people had made noticeable savings from switching companies and people were catching on to this.

"More people are aware of shopping around for power prices, definitely." Clients were also advised not to lock themselves into any fixed, long-term contracts, he said.

"At the moment we're over-abundant in electricity and there are more companies coming online so people will be offered better deals.

"That's why the big companies are trying to lock [people] in for two years."

Once agreed to, contracts were hard to get out of and people could become trapped, Mr Howard said.

Nationally, 396,793 customers switched electricity retailers in 2013, making up 19.8 per cent of all customers.

The previous year, 356,750 customers switched companies - 17.8 per cent of all consumers.

According to the Electricity Authority, the average customer saved $175 in 2012 by switching.

The authority's chief executive, Carl Hansen, said people were becoming increasingly aware of how to save money on power costs. "This switching activity is incredibly positive as it shows that customers are actively shopping around for the best deals."

The What's my Number campaign - which helps customers find the best deal online - had contributed significantly to people making the change.

But retailers had also played a role, he said. "Our research shows that the retailers are [now] much more proactive. Our survey results for 2013 show that there's been a 75 per cent increase in the rate at which retailers were approaching consumers for the first time."

Initiatives like Grey Power's deal with Pulse Energy to offer Grey Power members discounts was also boosting switching rates and contributing to "competitive intensity", he said.

Researching options properly and choosing carefully could save some households up to $300 a year, Mr Hansen said.

In the year to November 15, the average national power bill jumped 3 per cent to $62.69.