Why Contact Energy is offering families free power.
This opinion piece from Mike Fuge, CEO of Contact, is the fifth in a series of eight looking at improving outcomes for Aotearoa.
Becoming a parent is one of the most life-changing experiences any person will go through. Nothing can prepare you for the way bringing a baby into the world will transform your outlook and experiences.
As a father of four (in two years), I know from first-hand experience what an important moment welcoming a newborn is. It’s demanding and exhausting but is equally incredible and rewarding.
However, for many whānau, adding a new family member can be a stressful time – particularly when it comes to managing household finances.
New research from Contact reveals how adding a new member to the family can increase household bills and put pressure on families. For example, 91 per cent of Kiwi parents noticed an increase in their power bill after having a child, with nearly half saying that increase was significant. For nearly a third of families, power bills increased by at least 20 per cent once they had children.
For Kiwi parents, the biggest concern when it came to adding a new member to the family was the increase in bills, which for most, comes at a time when they are on a reduced household income.
Research shows raising a child in Aotearoa starts at $9100-a-year. From increased bills to new and often unexpected expenses, it’s an unfortunate reality that one of the most joyful life milestones can also become a financially challenging one.
That’s why, last year, Contact launched a pilot for a new initiative called ‘Fourth Trimester’. We wanted to relieve some of the financial pressure on families with newborns and reduce household energy bills, enabling parents to spend more time enjoying the newborn phase and less time thinking about the next bill. So, we gave customers with newborns three months of free power, on us.
The feedback we received from participants was overwhelmingly positive. Those that received the offer talked about the benefits of removing the mental load when it comes to things like running appliances and heating their homes.
One Fourth Trimester 2022 recipient said: “Free power has meant that we have had less things to worry about. We knew that we could wash and dry the towels and bedding in a couple of hours instead of having to hang them out. We knew that bubs was going to be warm. And I didn’t have to worry about the time spent in the shower (when I got five minutes to myself).”
Another described it simply as “perfect and life-changing”.
With such strong and passionate feedback from new parents across Aotearoa, we wanted to take the initiative a step further in 2023.
So, we’re offering families with newborns arriving from today (February 1) three months of free power to make the fourth trimester – the first three months of a baby’s life – a little less financially stressful. As part of this offer, we will be giving away up to two million hours of free power.
Those adding a member to the family early this year will be able to get a three-month break from energy bills, giving them the freedom to do as many loads of washing as needed (there will be a lot), run the air conditioning or heating, and use power freely without having to worry about the impact it will have on their monthly bill.
The offer has no contracts or obligations – we want this offer to give a few months’ financial relief to the newest New Zealanders at a time when whānau need it most.
It’s something we have standardised for our employees too, announced as part of our new far-reaching parental leave benefits last year.
While we don’t expect Fourth Trimester to be a silver bullet for financial stress during the newborn phase, we do hope that for families receiving the offer it will mean one less thing to think about when it comes to bills, giving them time to focus on getting to know their new addition.
We’re dedicated to making home the best place for all New Zealanders and Fourth Trimester is our commitment to helping make that happen for the newest Kiwi.
Find out more about Fourth Trimester conditions and how to apply here.