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Home / Rotorua Daily Post

Nip in the air means winter power bills are looming

By Daniel O'Mahony
Rotorua Daily Post·
28 Mar, 2015 06:00 PM4 mins to read

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It's starting to get cooler in the evenings.

It's starting to get cooler in the evenings.

You might have noticed it getting up in the mornings, that unfamiliar chilly nip as you leap from bed to shower.

Or maybe it hits when you're sitting out on the deck after dinner, and find yourself reaching for that long-forgotten jumper - and a torch, because it's already getting dark.

There's no escaping it: winter is right around the corner.

And after months of warm weather, that first electric bill after the cold has set in can be a nasty shock.

Electricity is a big business, and Rotorua consumers now have more companies than ever vying to power their homes.

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In 2014 four providers signed up their first customers in the region - Energy Direct, Flick Energy, Opunake Hydro, and Utilise.

While some are not completely new faces - Energy Direct is owned by Trustpower, the region's largest provider - their entry into the market still means more choice for Rotorua customers.

For Carl Hansen, chief executive of the Electric Authority, increased competition is a good thing,

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"[It] is great news for electricity consumers on regional networks," he said.

"Generally these new brands are being set up to target niche markets or consumer segments, so this is a good indication ... that retailers are seeking ways to differentiate themselves."

Prime examples of that specific customer focus are Opunake Hydro and its subsidiary Utilise, which only provide electricity for business customers - for now at least.

Mr Hansen said the Kiwi market was one of the most competitive in the world, two-thirds of consumers regularly encouraged to switch suppliers.

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He said it was "important that all consumers remember to regularly check that they are on the best electricity deal".

One of the newest companies to enter Rotorua, Flick Energy, aims to use the latest technology to offer consumers a better electricity package.

Its chief executive, Steve O'Connor, said smart meters allowed the company to offer real-time updates on prices - and claimed other providers hadn't caught up.

"It's like having a smartphone on the side of your house. Other retailers use it once a month to make a phone call, but we're using it properly," he said.

"We're really different ... we completely unbundle all the charges and the customer has access to all true costs."

Mr O'Connor said that with such fluid tariffs, customers could pay less for the same amount of electricity by making simple behavioural changes. "Our message is you don't need to use less, just at different times of the day," he said.

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For those without the time to shop around, simple measures such as installing a shower flow restrictor, using energy-efficient light bulbs and turning off appliances at the wall could help to cut costs.

Many Rotorua bill payers will be familiar with Trustpower. The company has long been the largest electricity supplier in the region.

But it has seen its market share decrease year on year since 2012, according to the Electric Authority.

Community-relations manager Graeme Purches said he wasn't worried by the new competition.

"We have been the fastest-growing electricity retailer each month in New Zealand for the past 18 months ... There have been some silly short-term discounts in the Rotorua region but we prefer to be consistent and sustainable.

"Although we never enjoy seeing customers depart for elsewhere, we are very happy with the overall growth of our business."

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Cut power costs with these five simple tips:

Energy-efficient light bulbs - each one can save up to $20 a year.

Check hinges, catches and latches to prevent heat loss - and use draught stoppers on doors.

Turn off appliances at the wall when you're not using them.

If your shower is filling a 10-litre bucket in less than 60 seconds, think about installing a shower flow restrictor.

When it's not raining, dry clothes outside on the line - indoor driers eat up electricity.

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- From www.energywise.govt.nz

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