|Region||Year ended||Total savings ($)||Total savings previous year ($)||Total savings change ($)||Total savings percentage change (%)||Region rank||Region rank previous year||Region rank change|
|New Zealand||12/31/2017 12:00:00 AM||372,282,847.82||290,170,689.26||82,112,158.56||28.30||1||1||0|
This report shows the estimated average and total residential savings available each year if all residential consumers had switched to the cheapest available plan to them (excluding spot priced plans). The report highlights rankings and changes amongst regions.
The average residential savings figures are estimates of the savings available in each calendar year if all residential consumers had switched from their electricity supplier to the ‘cheapest supplier’ in their region in each month. The figure is a measure of the average dollar amount that residential consumers would have paid over and above the cheapest retailer's standard offering in their region during that year. This does not represent the average amount saved by switching. The analysis does not take into account how retailers and the market might respond in the future.
The analysis takes into account: all residential consumers (active residential ICPs from the registry), the monthly consumption at residential ICPs (from retailers) assuming 40% is for hot water where plans have separate tariffs, each consumer's electricity supplier - including any changes (from retailers and the registry), standard pricing plans for each retailer in each region and any price changes (from the Consumer Powerswitch tariff database).
It is important to compare equivalent plan types within pricing regions. The following assumptions are used in calculating the savings estimates: • Standard plans are defined as composite or economy plans where hot water can be controlled. In the absence this tariff type being available for the retailer and/or region, a tariff option with an anytime/controlled combination is selected where the controlled portion is generally not more than 5 hours. However, there are many other plans available. The connection capacity selected for standard plans is 15kVA (or 20kVA where this is not available). Where tariffs differ in a region by connection density (due to the distribution tariff component), we have selected the higher density or urban tariff. This will be the lower cost tariff. • Tariffs available at the start of the month applied for the month. • No fixed term contracts or bundled offers are taken into account. However, its recognised a significant proportion of consumers may have selected these offers. • No secondary benefits including incentive or retention payments are taken into account. Secondary benefits not taken into account also include any rebates like the Tauranga Energy Consumers Trust (TECT) rebate to Trustpower consumers in Tauranga. • All consumers pay on time and receive any prompt payment discount available from their retailer. This included the Trustpower friends loyalty discount when it was available. • After 2014 75% of consumers receive an electronic discount (for example Contact and Mercury plans) if available. In 2012 and 2013, 25% and 51%, respectively, of Contact's consumers received the electronic discount. • A consumption weighted average annual tariff is applied to plans where the fixed price varies depending on eth time of year like. Examples include Powershop plans and plans with a winter/summer rate. • A discount of 4.17% (1hour/24hours) was applied to Electric Kiwi consumers' bills to account for one free hour of electricity per day without any behaviour change in 2016. • Spot priced plans are excluded from the set of available plans to switch consumers to as these plans are not comparable with other fixed price variable volume offers and may not be suitable for all consumers. However, connections served by a trader offering spot priced plans are switched to the a lower priced fixed price variable volume plan if one exists. This approach applies to both Flick Electric (starting 2015) and Paua To The People (starting 2016). • Some small retailers are excluded from this analysis as we have insufficient information. However, due to the small number of connections these are not considered material.
Each year these assumptions are reviewed and adapted to adjust to changes retailers make to their supply offers. In addition as new or improved information becomes available this is incorporated into the analysis.
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