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448 posts

Ultimate Geek

#191329 1-Feb-2016 11:29
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I had a contact rep, knock on the door on the weekend promising an amazing deal 20% discount plus locked in pricing for two years. My background is that I have been a PowerShop customer in Christchurch from when they started.


My Questions:


1. Contact Energy - I'm sure I remember they were on Fair Go re issues with billing / customer satisfaction etc. Do you know how they are tracking now have they improved.


2. 20% discount on prompt payments  - How much is this any different to normal prompt payment discount rates from other companies, as a PowerShop customer you buy your power ahead so out of the loop on this these days.


3. Locked in Power - With the current generating capacity is the unit pricing is this tracking down or is it still going up would locking this in be a good deal or a foolish what are your thoughts.


Any help with this is appreciated they will be back tomorrow evening.



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16107 posts

Uber Geek


  #1482724 1-Feb-2016 12:30
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Not quite what you asked, but look at Flick Electric. Right now we're at 23% savings for the past 9 odd months compared with our old power company, no lock in. Prices can go up or down any time. I plan to save more by putting in a hot water timer to heat overnight only.

1446 posts

Uber Geek

  #1482745 1-Feb-2016 12:56
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I switched to Contact (from Energy Direct) late last year following a door knock approach.  The rates they offered were very good, and resulted in a projected saving of about $600-$700/year.  I've found their customer service to be excellent so far.  They have had a couple of mistakes with billing to start with, but each time they rectified it promptly.  They have been proactive about identifying ways for me to save money, including identifying a better plan that I should be on, with rates actually better than the door knocker rates, and despite saying that they couldn't backdate the lower rates, actually did that when they reissued the bill, saving me about $200 on the first three months power usage.


I locked in for 12 months, and asked what would happen at the end of that period.  The sales person said that if the rates did go up I'd be free to move on, but that's no different than any other time, and Contact would likely be offering a new deal to retain our custom.


So far, pretty happy with Contact.  No regrets about switching, no plans to move again.


16387 posts

Uber Geek

  #1482785 1-Feb-2016 13:26
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I though power companies were no longer door knocking, and were advertising this. I have one of those do not knock signs on my door, and it seems to have got rid of all the hawkers. The thing is you should be able to ring them up and get a better deal, because they are not then paying commission to a third party for the sale.

627 posts

Ultimate Geek

  #1482808 1-Feb-2016 14:00
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Most other companies have circa 10% prompt payment discount (PPD). The PPD is really just the late payment fee system reversed and framed as a discount. Psychologically it seems to be much more appealing than a fine.


What is the lock-in period they were offering this time? Last time they visited it was 24 months which is IMO too long.

16387 posts

Uber Geek

  #1482863 1-Feb-2016 14:48
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Most other companies have circa 10% prompt payment discount (PPD). The PPD is really just the late payment fee system reversed and framed as a discount. Psychologically it seems to be much more appealing than a fine.


What is the lock-in period they were offering this time? Last time they visited it was 24 months which is IMO too long.





I don't like companies that do this. It really means that their advertised prices have a later payment factor built into them.

228 posts

Master Geek

  #1482912 1-Feb-2016 15:45
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Are you aware of the comparison site?



448 posts

Ultimate Geek

  #1482914 1-Feb-2016 15:48
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Thanks Guys for help here,


So I can now take it that:




  • Contact is improving to meet customer needs, a good thing.
  • 20% prompt payment discount is good, that most power companies offer only 10%.



  • Door knockers may not have the best deal.
  • 24 months locked in is far to high.

Next steps


  • Talk to Contact to see if a better deal can be obtained or a lesser lock in period by talking direct.
  • Talk to PowerShop to see what options that have to retain their customers.



448 posts

Ultimate Geek

  #1482937 1-Feb-2016 15:58
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Thanks Robcreid,


I have had a look but the area I would like to see the price trends graphs are not working currently, what I have looked is the provider cost tables then looked to take 20% off the values.  And Contact looks good here so its going to be a bit of thinking involved here as we move towards Winter in Christchurch it may help with the Winter up swing with Powershop.

113 posts

Master Geek

  #1482953 1-Feb-2016 16:27
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Are you aware of the comparison site?







Glad I refreshed the topic before I linked this as well - its a good site.



3228 posts

Uber Geek

  #1482959 1-Feb-2016 16:45
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if you think you want to change but want some incentives just start filling in the online joining forms on the power company of your choice. Just fill in your name, contact number and quit out , within 20 minutes you will get a call from the power company just say your not sure and they will start offering you deals. Did it with Pulse and came away with $150 off the first bill and $45 a month cheaper than the company i'm with. join and then wait to see what your power company you are with counters with. Some companies will even pay your fee to break contract, just don't be afraid to mention it .

Common sense is not as common as you think.

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