Could this five-minute job cut your power bill by $600?

Monday, 3 October 2022

Turn everything off at the wall... it saves pennies, but they all add up.

A five-minute job could save some households more than $600 a year on their power bill, Consumer NZ says.

Data from Consumer-run energy comparison site Powerswitch showed prices were going up around the country, but potential savings from switching providers had also increased.

“There’s a lot of competition in the market right now, which can lead to big savings for people who take a few minutes to shop around,” Powerswitch manager Paul Fuge said.

“Some new companies are offering better prices and well-established providers have new plans, which enable people to save by moving their electricity consumption to cheaper off-peak or ‘free’ periods.”

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Nationally, the potential saving from switching electricity providers had risen 24% in the past year, with the median saving now $385 a year.

But in some parts of the country, the savings could be even more significant.

In Queenstown the median saving was $624 a year and in Tauranga, savvy switchers could net a median saving of $595.

Powerswitch manager Paul Fuge says strong competition in the electricity market can lead to big savings for consumers. (File photo)

“Many consumers don’t realise that the price of electricity changes, dependent on where you live,” Fuge said.

“For example, the latest MBIE [Ministry for Business, Innovation and Employment] data shows the price of a unit of electricity in Whangarei is 10% higher than down the road in Auckland. But what this also means is potential savings are often higher in some locations as well.”

Consumer research had shown that concerns about the cost of living rose sharply over the past year.

In general, electricity prices were up about 4% but some companies had put their prices up more than others.

“It’s like when the price of beer goes up, if you shop around, you can still find some cheap beer options,” Fuge said.

“Unlike beer, all power is the same quality, so you might as well be getting it for the cheapest price.”

Data showed some consumers had been able to knock 20% off their bills by changing power plans while staying with the same provider.

“Over the last three months, people who have switched via Powerswitch will save a combined total of about $2 million over the next year.

“I want to see even more New Zealanders take advantage of the opportunity to save hundreds of dollars for a few minutes of work,” Fuge said.