A Word of Advice

30 April 1999

Getting Switched On

While the debate over the benefits of power reforms and power prices rages, the Ministry of Consumer Affairs feels that people have precious little information about how to go about changing retailers and what the impact (apart from pricing) would be. We would like to see people better informed, and for this reason we are reproducing the following questions and answers which have been prepared by M-co, the administrator of the New Zealand wholesale electricity market.

Do I have to change electricity supplier?

No. You will continue to be supplied by your current electricity retailer unless you decide to change supplier. You do not have to do anything to stay where you are.

What is the new number I see on my bills?

From 1 April 1999 every electricity bill in New Zealand will have a new 15-digit number that identifies which meter you are on – this is called the ICP (or installation control point) number and is unique to your meter.

How do I change supplier?

Contact the retailer you want to be supplied by. They will tell you what to do next. You may wish to ask the following questions of both your current and potential retailer:

• How much do you charge?
• What are the payment methods?
• What services do you offer?
• How long would my contract with you last?

If you decide to switch to another retailer you will be asked for the ICP number which will be printed on your electricity bill from the beginning of April. If you can’t find this number on your bill, ring your current retailer and they will tell you what it is.

What happens if I change retailer then change my mind?

This depends on your contract with the retailer. Some retailers do not stipulate a minimum period of supply, while others do. You may want to check this out before you change supplier.

Will people have to come to my home for me to switch retailers?

No. But if someone normally comes to your home to read your meter it is likely that this will continue. This may be the same person who currently reads your meter, or it may be a new meter-reader.

If I switch, will there be any interruption to my power supply?

No.

If I change supplier will I need new wires to my home or a new meter?

No. The only difference will be in which retailer supplies you with electricity and sends you the bill. Your new retailer will use the existing power lines to your house. You can also continue to use the same meter, though if your retailer chooses to change your meter, they will discuss this you

How does a different retailer get power to my house?

Your local Lines company owns the power cables to your house. They will know which retailer is supplying your house and will co-operate with your chosen retailer to supply you.

If I move can the same retailer still provide me with electricity?

It is technically feasible for you to move anywhere in New Zealand and continue to be supplied by your current electricity retailer. Check with your chosen retailer if you are going to move and want to continue being supplied by them.

Do I have to enter into a contract?

If you change to a new retailer you may have to enter into a contract. Be sure you understand and are happy with the contract before you agree to it. If there are parts that you don’t understand or agree with, discuss them with the retailer before finalising the contract. Not all contracts will be the same, but they are likely to be quite similar.

What does it cost me to change?

It may cost you nothing to change, but this will depend on the companies concerned. Ask any prospective retailer what their costs are, and ask your current retailer if there is a disconnection fee.

Will I still have special rates for my hot water?

If you stay with your current electricity retailer you can expect this to continue. If you switch retailers check if your new retailer also has these special rates.

I pay line charges. Will they be the same regardless of who my retailer is?

Line charges are for the cables that bring power to your house. If you decide to switch retailer you can check with them about what the line charges will be.

What is profiling?

This is a method of estimating the electricity consumption of each electricity user. Profiling helps a retailer to estimate the total amount of electricity they need to purchase from the generators to ensure they meet their customers’ requirements.

With profiling you will still have your meter read and be charged for the electricity you have actually used. It is only the process behind how the retailer knows how much electricity to buy from electricity generators that has changed.