Contact Energy recently announced that they have decided to remove prompt payment discounts from all plans for new residential customers from early June. This decision was mainly driven by an interest in more transparency, more fairness and more accessible energy for as many customers as possible.
Current customers won’t be affected by the plans, unless they renew or change their plan. New customers that sign up will have a choice between a suite of new products with different levels of benefits.
Contact Energy had previously said that the change in prompt payment discounts was not something they were looking at, but the positive reception to their Basic Plan launched in February changed this. The Basic Plan showed that customers value the transparency and simplicity of no-frills products.
The move also came in response to the first phase of the Electricity Pricing Review by Energy and Resources Minister Megan Woods. The report indicated that vulnerable households were disproportionately penalised by traditional prompt payment discounts. “Some households struggle to understand the various plans and how to choose the one that’s best for them, and low-income consumers miss out more often on prompt payment discounts - which can be as high as 26% of the bill, and which budgeting and advocacy groups say are really late-payment penalties.”
This looks like another great reason to choose Contact Energy as your power provider. It’s great to see a major retailer act on the Electricity Pricing Review to make sure New Zealanders get a fair deal on power.
Customers will now be able to choose between different tiers of products that offer different benefits:
Learn more about Contact Energy Plans
