Knowing which power company is right for you can be a bit of a hassle. You’ve got to compare numbers and then take into account all the deals and discounts each company offers. It can easily become a bit overwhelming, and it is hard to know what company is right for you.
Some things you’ll need to consider are:
- who you are living with
- what your living habits are – e.g. in terms of heating, technology, etc.
If you live alone and do not work close-by (or you’re out of the property most of the day) then you won’t be using a huge amount of electricity. But, if you’re living with a few other people, and there are constantly people at home, that can mean a huge power bill – even if it is shared among the flat.
Many providers offer discounts if:
- you use them for both your electricity and gas.
- you make an early payment.
Although these offers can initially seem great, you do need to consider how much you’ll be paying for power in the long run and if these discounts will actually make a difference. Even when companies offer hundreds of dollars in credit upfront for signing with them, ensure you enquire into the general pricing.
Comparing power companies
Sites like Powerswitch are an easy way to compare different companies. Powerswitch allows you to:
- compare the gas and electricity prices of different companies.
- easily switch from an existing provider if you can see that you could save money with someone else.
All you need to do is fill in some basic information about your property and your energy use habits. Then, Powerswitch will do the rest.
Comparison sites are a great way to record your power usage and understand what company will best work for you. This will help you to avoid landing deals and discounts that could discredit you in the future. It will also give you an idea of what your household can expect to be paying per month with each provider which is really important information if you’re on a budget.
The future of choosing a power provider
Although power companies are still required to organise electricity and gas for your home, other alternatives to doing this are starting to arise. Our Energy is one of them.
A New Zealand initiative to connect consumers with energy generators, Our Energy is aiming to eliminate the current process of going through a power company. This will bring fairness to the market, with the company having other goals such as:
- creating more local energy systems.
- encouraging sustainable and more environmentally friendly energy decisions.
- providing cleaner sources of energy.
If Our Energy is successful, this will make buying power easy and should also reduce the cost of it. At the moment, Our Energy is still testing their digital market place, however their initiative is one to look out for.
In short, try not to get tricked with upfront discounts, rewards, and fancy deals. Make sure that you consider whether these will actually benefit your future power usage or if they’re only immediately advantageous. There’s no point picking the plan with the highest early payment discount rate if you’re paying more for power.
Talk to your friends and family about their power providers, and use sites like Powerswitch to compare companies before making a decision. Remember, your property, your power usage habits, and your budget all inform what power company is best for you.