By Hayden Poole
Powershop launched back in February this year- and although I'm a little slow on the uptake I thought I’d give their 60-day trial a go – with the possibility of saving money.
Powershop is a subsidiary of Meridian Energy and is dubbed as the world’s first online energy store.
Before making the switch I asked the questions they probably hear on a regular basis.
-
What happens when my prepaid power runs out?
-
Won’t fluctuating power prices suck up any saving I’ve made?
-
Do I still get my AECT yearly dividend?
If you run out of prepaid credit - you won’t plunge into sudden darkness during a Wednesday night Thai takeaway (not surprisingly), Powershop will automatically buy the cheapest ‘everyday’ electricity for you.
The spot power prices will fluctuate with higher prices expected in the Winter months (as people use less in summer), but the idea is you pre-purchase powerpacks for a cheaper rate, and yes I’ll still get my AECT dividend.
The cost per Kilowatt (kWh) is all inclusive - with no daily charge, which is appealing as I’m away most weekends over the summer months.
I’m a low user - and was averaging around 500kWh per month on Mercury’s low user plan.
The price comparison for November 09 looks something like this:
Update: I was contacted by Powershop who informed me Mercury's prices exclude GST. I’ve updated to reflect and the savings are now more pronounced.
Mercury - Auckland, all inclusive low user: (After 10 percent prompt payment discount)
20.95c @ 500 kWh = $104.75c
+ daily charge of 29.99 cents per day = $8.99c
=$113.74c
+GST @ 12.5% = $14.21c
---------------------
= $127.95c
Powershop at the current 20.47c per kWh =
$102.35c
Powershop saving: $25.60c (around 20 percent)
So there’s a visible saving there. I’ve also prepaid some cheaper Powershop summer units and expect to save more over that time.
Summary:
So I’ve saved about 20 percent on my November bill.
It will be interesting to see what happens over the winter months when prices rise, but if Powershop doesn’t work out - changing power companies these days is as easy as making a phone call.
It’s currently so competitive some companies offering credits to swap back – usually with a locked in term attached.
Avoiding the daily charge and paying a slightly lower rate would also come in handy if you were away for extended periods of time.
You don’t need the internet to use Powershop but you will need it to take full advantage of their special rate packages which pop up on a regular basis.
It’s a very transparent model – previously I didn’t know – or really care how much per kWh I was being charged.
Lastnight – during dinner, I got a visit from a Contact Energy salesman who offered “the cheapest deal around”. Instead of looking at his sheet of offers with glazed eyes I knew exactly the unit charge and volume I’m currently using.
The conversation ended after about three minutes because “Contact doesn’t operate under that structure” and the offer was only available if I signed now....right now.
What it does show is that it’s a good time to shop around, take note of how much per kWh you’re paying and try get a better deal.
Useful links: