It pays to shop around for power

It pays to shop around for better bottom lines on power bills, new Ministry of Economic Development figures reveal.

The latest quarterly survey of electricity prices is based on an average household using 8000 kWh annually and shows that nationally in the year to February, lines charges rose 5.2 per cent, or $36, while the average retail price of power increased 2.3 per cent, or $43.

Regionally, there can be hundreds of dollars' difference between the most and least expensive retailers.

According to the survey, last month Central Auckland prices per kWh unit ranged between 21.42c and 24.19c, potentially a $220 difference a year on the average bill.

Molly Melhuish, a spokeswoman for the Domestic Energy Usage Network, said people could compare prices on Consumer's powerswitch website to find the best deals.

She said prices should not rise going into winter.

However, customers with Meridian, which has frozen prices until October, should watch out for potential steep increases once that freeze ends.

Her pick for major savings was the online retailer Powershop, a Meridian subsidiary. While prices were likely to go up over the colder months, they were cheaper than other retailers'.

Overall, power retailers were becoming more competitive in response to Energy and Resources Minister Gerry Brownlee's demand and were trying to differentiate their brands.

Mercury has tried to establish itself as being the most affordable of the big power companies, Genesis was pushing out its own smart meters while Meridian pushed renewable energy.

However, Ms Melhuish cautioned that while prices differ, the gains stay only if consumers keep watching and checking prices at least once every six months, and changing suppliers accordingly.

She said $5 million being spent by the Government on the benefits of shopping around could be better used on a free advice service on how to cut power use.

"That's more likely to be a permanent saving and it certainly gives the consumer more control and understanding."

Ministry of Economic Development spokesman Simon Lawrence said the survey could help households make decisions about which power supplier best suited them.

"It's a good idea for customers to regularly check whether they are with the cheapest retailer."

PRICE CHANGES(Year to February 15)

Auckland lines company

* Vector (Waitemata, N Shore) $47
* Genesis Energy $0
* Contact Energy $3
* Empower $3
* Energy Online $6
* Mercury Energy $90
* Meridian Energy $94
* TrustPower $218