Wednesday, June 8, 2011

Potential Cost Savings Realised by Changing Your Power Provider


It seems timely to report on the results of our streets efforts, in view of the recent blitz of adds on T.V. and Radio encouraging people to save money by changing their Power Provider. www.whatsmynumber.org.nz sponsored by the " Electricity Authority "

Case Study 2:-
In February a number of residents in Te Roto Rd were contacted by a representative of Powershop, a relatively new player of the country's numerous Power Providers.
They were conducting a customer recruitment drive in the region, and were offering some attractive enticements to switch.
Powershop were offering a guaranteed minimum 10% saving, plus an added 12 Days free power at 22 Units per day ( kW/Hr ) over a 60 day trail period.
Powershop has a relatively innovative way of operating compared to other suppliers. Check out the details on www.powershop.co.nz.

Consumer magazine has conducted a number of surveys on electricity prices and power providers over the last few years, Powershop seems to have come out at or near the top in all of them. www.consumer.org.nz/powerswitch.

The following results are from one household in the street that decided to switch from their existing provider Contact Energy to Powershop.
Comparing unit prices cents per kWh. Comparing apples with apples!
Powershop unit prices are a total price, It includes GST. Powershop does not charge line or meter charges. If you don't use any power over a given time period there is no charge.
This unit price can vary according to a number of factors like the time of year and your consumption rate. You can also pre bulk buy units at a discounted special price for use at a later date.
Contact Energy's unit price does not include GST, line or meter charges. You have to add these charges to your total accumulated unit charge and divide by the number of units used over a given time period to obtain the real price per unit !
If you don't use any power over a given time period you still end up paying for the line, meter and GST charges !! The less power you use over a given time period the higher the equivalent unit charge !!

Actual Bill : Powershop : April/May
33 days 682 kWh @ 22.18 cents per kWh = $158.07
Less 4 days free power 4 x 22 kWh x 23.18 cents per kWh = $20.39
Actual Cost = $158.07 - $20.39
Total = $137.68
Sample Bill : Contact Energy
33 days 260 kWh @ 27.187 cents per kWh = $70.68 Any Time Unit Rate = 23.641cents per kWh + GST @ 15% = 27.187
33 days 422 kWh @ 18.38 cents per kWh = $74.18 Economy Unit Rate = 15.92 cents per kWh + GST @15% = 18.38
33 days Two meter charge @ $1.33 per day = $43.89
33 days Easy Reader @ $0.15 per day = $4.95
Electricity Commission Levy
@ $0.215 per kWh x 682 kWh = $1.45
Grand Total including GST = $195.15
Cost Saving without Powershops free days power introductory offer.
Contacts Price = $195.15
Powershops Price = $158.07
Saving = $37.08
This is equal to a 19% saving !
Cost Saving with Powershops free days power introductory offer included.
Contacts Price = $195.15
Powershops Discount price = $137.68
Saving = $ 57.47
This is equal to a 29.45% saving !
Conclusion.
A 19% saving is a good result, if your power bill is $2000 over one year ( $166 average per month ) this equates to saving of $380 over one year !
By signing up for Powershop's 12 days free power sign up trial, you get 12 days Free power !
You get 22 Units per day, the unit rate may vary depending on the date. However if we assume our example rate of 22.18 cents per unit.
This means a further one off saving of 22 x 12 x $0.2218 = $58.55
Well worth a try ?

By Denis

No comments:

Post a Comment