Consumers choose electricity company on more than just price

Press Release

22 November 2016

Consumers choose electricity company on more than just price, say retailers

Findings by the Electricity Authority on how consumers choose their electricity provider differ from the feedback retailers are getting directly from their customers, says the Electricity Retailers Association of New Zealand (ERANZ).

Chief Executive Jenny Cameron says customers do see value in services being offered by the different retail brands.

“That is demonstrated by the growth in new retail brands and in offerings from existing brands.

“Stating that electricity is only a commodity and focusing singularly on price is a narrow view of the potential of the electricity retail market.

"Competition drives more than just a reduction in price. It also enhances services, and this is exactly what we are seeing in the New Zealand electricity retail market.

“Customers are making choices based on more than just price all the time, and they may choose to stay with, or change, retailer based on those non-price factors – such as high-quality customer service, tailored personalised packages, high level of transparency and technology, ability to offset carbon emissions, packages that put more electric vehicles on our roads, or just the fact that the retailer has a great brand with a great advertisement that they like.

“We also know that customers really value having the opportunity to take up things like fixed-price contracts that give certainty over household costs – advice that has been given to us by budgeting advisers – or loyalty innovations such as Airpoints and FlyBuys.

“They all add up to many compelling reasons why customers choose the companies they do.”

About ERANZ

The Electricity Retailers Association of New Zealand was established in August 2015 to represent the electricity retail industry on important sector-wide issues such as delivering value to stakeholders and consumers, and supporting the continued development of an open, competitive, sustainable and effective electricity market.

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