Consumer NZ says people loyal to power companies could be paying extra annual costs

about 1 hour ago

Consumer NZ says half of households across the country are remaining loyal to their power company but that loyalty is being rewarded with hundreds of dollars being added to their annual power cost.

The manager of Consumer's Powerswitch website, Paul Fuge said over a million households are effectively paying a "loyalty tax".

"You could be using the same amount of power as your neighbour but paying much more than them," Fuge said.

He says while many people believe power companies charge about the same rates, that is not true.

"Too many consumers -- especially those that have been with their retailer for a long time -- understandably assume their retailer will reward their loyalty and look out for them by letting them know when a better deal comes along.

"To be fair, some do, but, unfortunately, not all."

Fuge says energy retailers tend to offer their best deals to new customers as promotional perks.

He says power prices have climbed 20 percent in the past two years but people can save money by switching providers.

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