How are new connections (ICPs) represented in switching numbers?

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  • Last post 27 February 2017
MartinT posted this 20 February 2017

In the NZ-wide switching statistics, why does total gains always equal total losses?  What about new connections or disconnections?

Matthew Keir posted this 27 February 2017

New connections do not show as a switch

The switch process only involves the transfer of ICPs between traders. In a competitive retail market, retailers must attract customers from their competitors (i.e. existing ICPs) by offering value in order to grow market share.

Switching does not capture other ways retailers acquire or lose ICPs. However, the impact of new connections and disconnections is reflected together with switching in the market share reports.

Switching gains and losses will always be equal

Each switch represents a gain for one retailer and a loss for the other, thus they will always be equal. 

Note that when you are looking at national statistics, it’s very likely that there is a regional bias to the gains and losses for an individual retailer depending on how competitive a retailer’s offer is or how active they are in promoting it.

National retail parent company gains and losses from switching, 2016

 

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