Wholesale spot market electricity prices are 44%* lower than they were a month ago following heavy rainfall in the South Island, but few residential customers will see the lower prices on their power bill. Unless they’re with Flick of course!
People usually dread their winter power bills, but the irony is that market prices are often not at their peak winter!
NZX tracks the spot price of generation by geography, and nationally, as a 7-day rolling average on the Electricity Info website. Their data shows a clear spot price decline over the past month.
As a result we’ve seen some amazing savings for our customers since spot prices started falling back in April. Average savings across all of our customers last week were 20%, and one Wellington customer hit 52% (we wrote about him a few weeks ago when he became the first Flickster to go over 50% savings).
A household’s bill is a combination of their price and how much they use. Retailers with a fixed price model will tell customers to use less to reduce their bill; whereas our customers don’t have to go without, knowing they’re paying a lower spot price over the winter months.
Lower winter spot prices are not unique to this year. On average Flicksters saved 15% over the winter months in 2014.
Kiwis really should consider whether they are getting the best deal at this time of year (start by seeing how PowerSwitch currently ranks retailer pricing). It takes just 3 minutes to change retailers, and could save you hundreds!
A cautionary tale!
Without lowering the tone, a quick word of caution…
There are a lot of aggressive credit offers in market at this time of year because traditional retailers make good money from their customers over winter when they pay low spot prices, but continue charging their customers higher fixed prices.
People should be super clear about the true value of any deal, and what they’re giving away, when they take an offer.
*NZX Electricity Price Index for New Zealand on 19 April 2015 was 9.7976 cents/kWh and on 18 May 2015 was 5.529 cents/kWh. www.electricityinfo.co.nz