Kiwi households are likely to see some big changes in 2020 to the electricity market. Last year the government announced extensive reforms to the way that we buy and sell power.
In the face of these changes, you may be wondering how to get the best deal on power in 2020. This is definitely a year to be proactive about comparing power plans to make sure you take advantage of the changes.
Choosing the right time to switch energy providers can be tricky. If you haven’t considered switching power providers recently, or you’re likely to be effected by the government changes in 2020, then you could be paying more than you should for power.
This year is a good time to compare the options regularly to make sure you are getting a good deal on power as the market changes. You are likely to find a better deal on power in 2020 if:
If you’re thinking about switching power providers but you’re part way through a fixed-term contract you may have to pay a penalty or exit fee to leave your current contract. If the penalty is larger than any potential saving you could make it may not make sense to switch.
The electricity reforms include a number of changes designed to give consumers a better deal on power. A ban on win-back offers, increasing competition between providers and making it easier for customers to switch.
The ban on win-back offers means that power providers will have an incentive to offer customers the best deal up front, rather than waiting for customers to threaten to switch. And competing Power Companies are also likely to start introducing attractive offers to entice new customers to join.
The government has also banned power companies from offering prompt payment discounts to customers. As a result we are likely to see power companies offer lower rates to all customers, and more innovative rewards and perks in place of the discount – for example power plans that give you perks like fuel discounts, or deals to bundle your power with other services like your internet plan.
There has never been a better time to stay on top of your power bill. We are likely to see some big changes in the coming months as the changes from the Electricity Review come into effect. For example, Power Companies have been given until mid-2020 to get rid of prompt payment discounts.
If you want to keep your options open until later in the year, you could choose a plan with no fixed term contract. Then regularly check in on new Power Deals with Power Compare and easily switch in the future if a better offer comes along.