The latest research undertaken by leading online research agency, Opinion Compare, has found that while only 38% of the Kiwi population are aware of the proposed Government power reforms, 3 in 5 New
Zealanders oppose the removal of prompt payment discounts (PPD's) and low user tariffs. Only 21% have trust in the
Government proposal while 67% expect their power bills to increase as a result.
A national survey of n=1,159 people found that the removal of PPD’s and low user tariffs has sent heated waves of
disapproval throughout New Zealand, with 60% having negative sentiment around the removal of PPD’s, and 63% negative
towards phasing out low user tariffs. In particular, nearly three quarters of Kiwis who currently receive prompt payment
discounts were negative towards the removal of them, while 76% of low energy users felt the same towards the phasing out
of low user tariffs.
Aside from customer support, around three quarters of Kiwis rate low user tariffs and prompt payment discounts as their
top 5 factors of importance when it comes to choosing an energy provider.
Table: Importance factors when selecting an energy provider
1. Customer Support 80% 2. Low User Tariffs 77%
3. Loyalty Discounts 76%
4. Prompt Payment Discounts 74%
5. Renewable Energy 56%
6. The energy provider’s environmental position 55%
Women seemed to express greater negativity of these proposed changes with 66% against the removal of low user tariffs
and 63% against the phasing out of PPD’s. Driving the negativity amongst Kiwi’s is the expectation that power bills will
soar - with 67% believing so. A sense of mistrust towards the Government has transpired as a result in that 50% don’t
trust the Government with the reforms and only 19% thinking that what the Government is doing is positive.
Interestingly, nearly half of Kiwi’s are confused about how these reforms will impact them personally.
In the midst of the reform announcements, Electric Kiwi is currently the energy provider of choice for New Zealanders.
70% of users believe they are getting the best value from them and for the quarter of kiwis likely to switch as a result
of the reforms, they are more likely to switch to Electric Kiwi (40%), as well as Contact Energy (33%) and Meridian
Energy (32%).
Gavin Male, Managing Director, said that "We always thought that some of the reforms wouldn’t be immediately popular.
When you make proposals based on factors that Kiwis have historically used in selecting their energy provider, there’s
going to be backlash - which this research clearly demonstrates. What’s more concerning is the high level of uncertainty
out there. It could be a lack of transparency coming from the government or the energy providers themselves, but with an
expectation the proposed changes will hit their back pocket, the average New Zealander is going to be looking for better
deals and also someone to blame should their bills increase.’