| Type | State-owned enterprise |
|---|---|
| Founded | 2007 |
| Founder(s) | Ari Sargent, Simon Coley |
| Headquarters | Wellington, New Zealand |
| Area served | Auckland, Waikato, New Plymouth, Wanganui, Palmerston North, Wairarapa, Wellington, Christchurch, Dunedin |
| Key people | Ari Sargent, CEO |
| Industry | Electricity retailing |
| Products | Electricity, gas (planned) |
| Employees | 22[1] |
| Parent | Meridian Energy |
| Slogan | Same power, different attitude |
| Website | http://powershop.co.nz |
Powershop is a New Zealand state-owned online electricity retailer. Powershop claims to be the first electricity company in the world where consumers can choose between different brands of electrical power listed on the website and switch between them with the click of a button.[2] Different brands of power may offer lower prices, sponsorships or environmental benefits. Users can either let the system automatically buy power from the cheapest supplier, or log in regularly to take advantage of specials. Powershop initially claimed it would always be the cheapest company for the "typical" consumer. This claim was later dropped.[3]
Powershop was found to be the cheapest electricity retailer for the typical consumer in the main centers by the Ministry of Economic Development. [4][5] It was the best company in Consumers' Institute of New Zealand's 2011 survey of electricity companies. 96% of Powershop customers found it 'good' or 'very good'.[6]
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Meridian traditionally had been a major electricity generator, but only a small retailer.[7] In 2006, Ari Sargent, an electricity industry veteran, had an idea to increase Meridian's market share in the retail market: turn electricity from an utility into a consumer good.[1] Initially, it was planned to sell electricity tokens in supermarkets, but this idea was scrapped due to cost and they turned the idea to the internet.
Sargent, together with Simon Coley, a design specialist, founded Powershop in September 2007.[1] In September 2008, Powershop bought its predecessor, Meridian Energy's Marketplace Innovations Business Unit for NZ$1.26m in stock.[9]. After 14 months of private beta, it officially launched to the public on 22 February 2009 and was unofficially available in the weeks prior.[8]
Once a user signs up to Powershop, there is no need for them to visit the Powershop website anymore. Powershop will buy the cheapest "Everyday" electricity for them automatically. However, users that do visit the Powershop website can take advantage of the "Specials" and "Powerpacks" that are on offer from time to time.
Powershop will read the electricity meter once a month, but users are encouraged to read the meter themselves more often to understand their power usage more. Graphs and charts of power usage are provided to the customer.
All power buying must be performed via their website and payment made by credit card, direct debit or online banking. Phone, Skype and Twitter support are available.[9][10] Customers can also credit their account at PostShops. As a launch promotion, a signup pack was sold at The Warehouse.[11]
Powershop provides an API for 3rd party developers to write programs that work with it.[12]
There are three main types of products:
Unlike other power retailers, the products are uniquely designed for each consumer so everyone pays a different price. The more electricity a consumer uses, the less they pay. Also, there is no daily charge, just a single price for the electricity used. Currently, there are several brands of power available on Powershop.[13]
One cent per unit will be donated to the rugby team. Rebadged Powershop.[14]
Meridian is a state owned enterprise, the parent company of Powershop.
PowerKiwi is a new power company started by a group of New Zealand bloggers. Currently, they buy electricity wholesale from Powershop.[15]
Airshed is a specialist carbon management company.
All customers with a normal non-prepay electricity meter and an internet connection can join Powershop, no special equipment is needed.[16] For maximum effectiveness, customers have to read their power meter often and enter the readings into the website. This can be annoying. Powershop will automatically get readings from customers with smart meters, but only for customers who already have one. It will not install smart meters for customers.[17] Customers with Arc Innovation brand smart meters can get their readings updated daily.[18] All customers in Christchurch with a smart meter receives a rebate of 5c/unit (a discount of around 20%) for power used in weekends.[19]
Powershop planned on 4-50,000 customers in its first year.[20] Powershop achieved 5000 customers in October 2009,[21] and 10000 customers in February 2010.[22] CEO Ari Sargent blamed this on inertia and general distrust of power companies.[23] Energy expert Molly Melhuish claims that because "people are so terrified of their power bills", "a majority of people" wouldn't want to try a new concept like Powershop.[24] The Consumers' Institute of New Zealand welcomes initiatives to increase retail power competition.[25]
In a survey by the Ministry of Economic Development, Powershop was found to be the cheapest electricity retailer for the typical consumer (one who consumes 8000kWh/year) in Auckland, Wellington, Christchurch, Dunedin, Manawatu and New Plymouth. It is the second cheapest in Wanganui and Wairarapa.[26][27]
In Consumers' Institute of New Zealand's 2009 survey of electricity companies, Powershop gained the highest rating ever in the history of the survey. 92% of Powershop customers found it 'good' or 'very good'. It did not receive a single poor rating from any of its customers.[28] In 2010, it again received a 92% satisfaction rating. In 2011, it gained a 96% customer satisfaction rating [29].
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