William Curtayne, portfolio manager with Milford Asset Management, an energy specialist, said that in most regions Powershop was cheapest. "Typically TrustPower is the most expensive."
Mr Curtayne said that in the past TrustPower had charged up to 20 per cent higher than the state-owned enterprises. But the gap had now closed to within 2 or 3 per cent, he said, though TrustPower was still at the upper end of pricing. The increased price competition in the sector resulted both from the industry not growing, and because of the Government's "What's My Number?" campaign, which had highlighted for many that they were paying too much.
Powershop cited figures from the Ministry of Business, Innovation and Employment (MBIE) showing average prices per kilowatt in Tauranga weighted by market share were 11 per cent higher than those in Auckland and more than 14 per cent higher than those in Hamilton for an average household. However, TrustPower said that interregional delivered electricity price comparisons were meaningless when local line network, transmission, and wholesale electricity costs all varied.
"This demonstrates either a lack of understanding of different electricity market dynamics, or a deliberate and cynical attempt to mislead consumers by trying to paint a picture that is different to reality," said Mr Purches.
TrustPower also questioned Powershop's use of MBIE figures to assert that the average Tauranga household used 8000kWh with Trustpower, and would pay $537.72 less per year if it switched to the cheapest local retailer, a bigger saving than the average TECT rebate. TrustPower said that the MBEI analysis used the same standard consumption for all regions and only included simple published retail pricing options. The actual average household consumption in the Western BOP was approximately 7000 units, said Mr Purches.