Competition and choice is great

December 20th, 2013 at 11:00 am by David Farrar

Stuff reports:

Power customers are switching companies at the highest rate for more than two years.

Across all retailers in November, some 37,000 customers changed electricity company, according to a monthly report from Meridian Energy.

The 12-month average switching rate was 19.6 per cent at the end of November, the highest since the middle of last year.

A recent global report on household electricity prices showed New Zealand had the highest level of retail “churn” in the world, ahead of Belgium and Australia which are just under 18 per cent a year.

The VaasaETT report said New Zealand had some of the most efficient switching procedures anywhere, with “a good supply of competitors”.

The latest government survey of household prices estimates the average tariff as 28.5 cents a kilowatt hour, which would make prices about the fourth cheapest compared with European countries.

37,000 customers in one month swapped providers to get a better deal. That’s excellent.

Of course that will end with the Labour/Green nationalisation policy. All generators will be forced to sell at the one price to a state monopoly, which will then sell at the one price to retailers. This will mean no effective competition and effectively no choice. Everyone will be ultimately buying their power from a Government monopoly, and that’s batshit crazy.

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19 Responses to “Competition and choice is great”

  1. RAS (55 comments) says:

    Labour’s policy is, as usual, stupid, but how do our prices compare to more comparable countries like in Aus, the US and Canada?

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  2. pedrogarcia (46 comments) says:

    Prices with Aust are comparable – the issue is that we use a lot more here than across the Tasman. Colder, poorer insulation etc.

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  3. Reid (15,505 comments) says:

    …that’s batshit crazy

    Mental is as mental does.

    Dumb and dumberer doesn’t even begin to describe the left when they attempt economics, or anything else for that matter.

    The fact some people never learn and become lifelong lefties says a lot about the bell curve and galloping mentalism running rampant in society, doesn’t it.

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  4. Cunningham (746 comments) says:

    They have been given a free ride on this and it really annoys me. Where is the MSM grilling them on it? I seriously hope they get held to account next year on the stupidity of this proposal. NZers need to know the REAL implications of what they are proposing.

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  5. queenstfarmer (696 comments) says:

    The fact some people never learn and become lifelong lefties says a lot about the bell curve and galloping mentalism running rampant in society, doesn’t it

    Many learn, but some are just too embarrased or unwilling to admit they have been wrong all their lives (despite their perceived towering intellects) and therefore double-down and delude themselves. They become embittered and start finding conspiracies to “explain” why their ideology has never worked. The theory is sound, it will work, it’s just that [insert villain here] is sabotaging everything. Like it’s the Republicans fault that the Healthcare.gov website is full of bugs.

    Rational, empirical defence of their socialist policies is not possible, so they resort to name-calling and dishonesty. As seen on this site frequently by certain lefty commenters.

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  6. edhunter (434 comments) says:

    Funnily enough I had the phone call last night offering me a 8% discount to change power company, so this morning I phoned my current provider asked them to at least match it & hey presto a 9% discount increasing to 10% if I pay by Direct Debit.
    Now while it does annoy me that I had to phone up to get the discount i.e. why didn’t I get the discount straight of the bat, am happy to be staying with the devil I know.

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  7. Ross12 (926 comments) says:

    edhunter

    We had exactly the same situation with Telecom recently. My wife bought an ipad mini and got a 2 degrees deal which went with it. When she rang to get her mobile phone billing cancelled with Telecom they gave us $20/month reduction in our home/business plan without even asking for it.

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  8. burt (7,085 comments) says:

    edhunter

    I’m not sure they even think about the consequences of their ideology – they just want to get their hands on other peoples money and like drug addicts they can convince themselves that the ends justifies the means for their own self interest.

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  9. Rowan (1,726 comments) says:

    I had a salesperson from Nova Energy the other week, compared to what we are getting with Contact, it wasn’t worth it Nova would have been probably less than $5 per month cheaper.

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  10. Tom Jackson (2,232 comments) says:

    Everyone I know who traded did so because it was the lesser evil.

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  11. Reid (15,505 comments) says:

    Everyone I know who traded did so because it was the lesser evil.

    You sound like Edison Tom, when he was travelling around the country executing elephants and other animals to show how evil were the AC electricity generators invented by his rival, Tesla.

    Why don’t you live in a tin shack with no fridge, lighting and heating then? It doesn’t seem to me to be very consistent, to support a corporation who you think is evil. Because you are, aren’t you Tom. That makes you evil too, doesn’t it.

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  12. RRM (8,988 comments) says:

    Yes, competition & choice is great.

    What ISN’T great is when you get a doorknocker at 11:35am on a Saturday, extolling the virtues of his/her power company…

    He assures you he would be “much” cheaper than whoever you’re currently with.

    Nevertheless he can’t show you a simple table summarising his power company’s pricing vs the competitors.

    Oh no.

    And he can’t leave a brochure with you, that might enable you to make a sane decision in your own time.

    Oh no.

    You have to decide RIGHT NOWtoday, RIGHT NOW!! While you’re in the middle of changing the baby, telling the daughter to put more sensible shoes on, and getting ready to go out somewhere you should have already been 20 minutes ago.

    Sorry, Sanjeev, I really have no idea whether I want your product or not. And frankly you’re the last thing I need in my life right now. Now, get off my property…

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  13. OneTrack (1,954 comments) says:

    RRM – “What ISN’T great is when you get a doorknocker at 11:35am on a Saturday, extolling the virtues of his/her power company…”

    Well Labour and Greens are going to solve that problem for you ( they are thoughtful like that ). There will be just one supplier and one price. So easy. And it must be the best price, mustn’t it. A Labour government wouldnt screw the electricity consumer blind so that they could pay for …. whatever they want to pay for today. What could go wrong?

    I suspect more than a few people will be missing Sanjeev. :-)

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  14. ross69 (3,637 comments) says:

    John Key reveres Pharmac and I suspect he’ll revere NZ Power for the same reason.

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  15. Poliwatch (335 comments) says:

    I wonder how many who voted “No” in the referendum have moved their account away from MRP or Meridian on principle. My best guess is zero.

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  16. ross69 (3,637 comments) says:

    Of course DPF never asks why so many customers are changing power companies…wouldn’t that be an obvious question? The answer is that consumers are paying too much for power.

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  17. queenstfarmer (696 comments) says:

    @ross69, as usual you are wrong. Pharmac is a bulk buying agency. It does not ban people from obtaining medicine from another provider.

    Households will be banned, however, from obtaining electricity from anyone other than NZ Power. You know, like North Korea.

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  18. deadrightkev (175 comments) says:

    Yes competition and choice is great. We just need National to dump their thieving socialist ETS and sell the rest of the power generators so the market knows where it is really at. At present only a mug would invest in something half run by politicians and the overhanging threat of half baked regulation.

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  19. Johnboy (13,335 comments) says:

    I think all you tightarse, power switching, bastards should switch to Mighty River so my shares can get up a bit from $2.06!! :)

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