Changing Power Providers

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Bee

732 posts

Ultimate Geek

#127413 9-Aug-2013 11:27

Hi,

I'm considering changing power companies for my home...

I've found what seems to be the best company for me and after extensive research, Im pretty sure it will save us at least 10% every month compared to our current company...

The only concern I have is they want to enter into a 3 year contract. Within that time the price is guaranteed not to change.

Does this seem unreasonable and would it be a deal breaker for you?

Does anyone know what the power prices are likely to go in the next 3 years - having a fixed price is not that great if the retail prices come tumbling down in the future...

For me the uncertainty of it all makes me nervous but on the other hand I wouldn't want to pass on a good deal...

Doing your best is much more important than being the best.

ubergeeknz

3344 posts

Uber Geek

Trusted

Vocus

#874464 9-Aug-2013 11:28

Talk to your current provider first, and tell them you're looking at leaving. Bet they offer you something to keep you.

Klipspringer

2385 posts

Uber Geek
Inactive user

#874465 9-Aug-2013 11:29

Post the name of the power company, the figures they quote and the area you live.

Bee

732 posts

Ultimate Geek

#874479 9-Aug-2013 11:33

ubergeeknz: Talk to your current provider first, and tell them you're looking at leaving. Bet they offer you something to keep you.

Bet they don't :) I'm currently with Powershop and looking to move to Contact - they called me.

The rates Contact are offering are much less than anything on their website or the powerswitch website so it does seem strange and almost too good to be true, but I do have it in writing...

Just concerned with the 3 year contract as I currently have no idea what might happen in that time - especially if the seemingly impossible happens and Labour wins the next election!

Doing your best is much more important than being the best.

ubergeeknz

3344 posts

Uber Geek

Trusted

Vocus

#874484 9-Aug-2013 11:36

Bee:
ubergeeknz: Talk to your current provider first, and tell them you're looking at leaving. Bet they offer you something to keep you.

Bet they don't :) I'm currently with Powershop and looking to move to Contact - they called me.

Oh, powershop :/ that would be the exception then.

The trouble with a 3 year contract is, you're taking a punt that prices won't drop in 3 years...

ankit816

147 posts

Master Geek

#874489 9-Aug-2013 11:40

Just concerned with the 3 year contract as I currently have no idea what might happen in that time - especially if the seemingly impossible happens and Labour wins the next election!

Also, consider the chances of you moving house before the 3 years contract expires? If that's likely, you may not want to sign up for such a commitment at this stage.

geek4me

843 posts

Ultimate Geek

Trusted

Lifetime subscriber

#874592 9-Aug-2013 14:20

I switched from Mercury to Meridian when their salesman called at the door. He offered cheaper pricing than the out of contract plan I was on and a $300 credit after 3 months (since we used over 1,000 units/month) pricing fixed till 31 March 2015. Within days Mercury called to offer a $250 credit if I stayed with them. Some Power companies offer $ credits when they visit if you switch to them. I have not seen these credits offered if you switch on-line or do nothing when out of contract.

The penalty for switching when under contract if prices drop significantly before 31 March 2015 is $100. I figure as they have given $300 for switching and they only want $100 of their $300 credit back I would still be $200 better of.

Note that prices do vary between providers in different parts of the country.

sleemanj

1490 posts

Uber Geek

#874601 9-Aug-2013 14:39

Does anyone know what the power prices are likely to go in the next 3 years - having a fixed price is not that great if the retail prices come tumbling down in the future...

Does anybody remember when the last drop in power prices was? Has there ever been a drop in power prices?

You could try talking them out of the contract period, or at least haggle them down to a year, many power companies are quite open to cutting a good deal to get, or keep, customers.

---
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nickb800

2721 posts

Uber Geek

Trusted

#874608 9-Aug-2013 14:53

sleemanj:
Does anyone know what the power prices are likely to go in the next 3 years - having a fixed price is not that great if the retail prices come tumbling down in the future...

Does anybody remember when the last drop in power prices was? Has there ever been a drop in power prices?

This.

With Tiwai Point committed for the medium term, it's hard to see any influences that would drive prices down or even cause them to remain flat. If the deal offered is the same or lower than current prices, then I say it's a no-brainer

richms

28198 posts

Uber Geek

Trusted

Lifetime subscriber

#874876 9-Aug-2013 22:25

Totally depends on the cost to break the contract as to if its worth it or not. When I was offered a slightly better price to change on a contract with someone, the break fee was something pathetic like $75 - so nothing to worry about.

Richard rich.ms

Aredwood

3885 posts

Uber Geek

#874924 10-Aug-2013 01:16

Find out if there are any situations where the price could be increased. Im on a fixed power contract which stated the price can be increased. Due to new regulations, increase to electricity commision levy, or increase to GST rate.

Make sure that if lines company charges increase that they won't get passed onto you. Since they are terrible for always raising their prices.

pctek

807 posts

Ultimate Geek
Inactive user

#875300 11-Aug-2013 11:33

Have a read:

http://www.stuff.co.nz/business/money/8773399/How-to-avoid-power-switch-shock

And this example:

http://www.consumer.org.nz/news/view/mercury-energy-fixed-price-plan