Unlisted energy retailers appear to be benefiting from consumers looking for the best value electricity prices as times remain tough for household spending.
Contact Energy said yesterday it had 457,500 customers at April 30, down 19,000, or 4 per cent, from April 30 last year. Nearly 3000 were lost in the month of April.
Contact gained 2000 LPG customer numbers, a figure that included franchises.
On Friday, TrustPower reported it had lost 4000 customers in the year to March - from 225,000 to 221,000.
Craigs Investment Partners broker Chris Timms said retailers such as Powershop, Mercury Energy and Meridian Energy were feeling the benefits as consumers tried to get value for money.
Powershop allowed customers to shop online for the best electricity deal on the day. It was backed by Meridian.
The changing numbers for Contact and TrustPower were not surprising given the industry churn, he said.
"Consumers are considering their options and want the best option to make their scarce dollars go further. Power charges are one of the largest items of household spending."
The Government might be considering further details in Thursday's Budget about the partial privatisation of state-owned energy assets.
Timms said the churn of customers would heighten interest in any announcement, given the recent escalation of power prices.
The Government also had more reason than ever to try to raise cash from the partial privatisation.
"If they ever needed the extra money, they definitely need it now given the level of debt."
In its report, Contact said that at April 30 South Island hydro storage was 100 per cent of mean and North Island storage was 157 per cent of mean.
Contact noted that the average wholesale price for April was $56 a megawatt hour but prices on March 26 were interim and subject to the Electricity Authority's final decision.
- OTAGO DAILY TIMES
Unlisted energy retailers benefiting as customers seek value
Contact Energy gained 2000 LPG customer numbers. File photo / NZ Herald
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