Prompt payment discounts have traditionally been a standard part of NZ Power Bills – usually a discount of up to 15-20% for power customers who pay their bill on time. If there is a conflict between our General Terms and the Special Terms of this Plan, the terms of this Plan will apply. For FY19 this equated to 39 cents per share, compared to the 32 cents per share declared for FY18. Compare power companies NZ wide on Power Compare. Contact PrePay is our new service that lets you pay for your electricity up front, just like a prepaid mobile phone. Electricity is an essential service, says Consumer NZ, and many people struggle with their bills. The Basic Plan, is Contact Energy’s simplest plan. If you’re going to miss your prompt payment discounts – make the most of them now – and make sure you compare power plans to get the best deal and rewards in the future! ... so they are able to offer you a discount. A good prompt payment discount has often been a key deciding factor for people who are choosing a new power plan. The Electricity Authority was also collecting and analysing data from retailers on early payment discounts and late payment penalties, which would determine the next steps, which could include regulation, she said. New Zealand’s third-largest power retailer by market share, Mercury, still offers the prompt payment discount to customers who choose it or … The company cut its discount to 10 per cent from 12 per cent to accurately reflect what it cost to recover a late payment, the spokesperson said. GST) off your first bill 2% discount on your energy charges Fixed energy rates until 31 October 2022 As the name suggests, the customer will have a specified amount deducted from their bill total if they pay before a certain date. Standard acceptance criteria apply. It’s a back to basics, hassle-free plan. Direct Debit is an easy option that you can set to make payments automatic each month. This does not apply to other charges including Fixed charges and Market Fees. So that so-called prompt payment rate, everyone should be getting that,” she said. Trustpower has removed the discounts from all new plans, and the company is in the process of removing them from existing customers’ plans. Understanding Early Payment Discounts on Invoices. COUPON (2 days ago) An early payment discount (also called a prompt payment or cash discount) is a reduction in an invoice balance when it’s paid before the due date. On the surface prompt payment discounts appear to be a great deal for people who pay their bills on time. If you want to get ahead of the ban on prompt payment discounts – you could consider a plan from Contact Energy or Meridian and benefit from a general discount and additional perks. Most customers chose to join Mercury with a prompt payment discount but about 30 per cent chose another offer, a spokesperson said. While many homeowners benefited from the discounts, it effectively rewarded wealthier customers at the expense of those whose income did not cover monthly expenses, said Chris Walsh, founder of price comparison site Moneyhub.co.nz. … Energy Online offers electricity and gas separate services, in addition to bundles. ... Get up to $150 credit and up to 11% monthly discount with this exclusive power deal. They generate around 25% of New Zealand's electricity, and are one of the country's largest wholesalers and retailers of natural gas; with around 47% of the LPG market in New Zealand. For individual Contact Energy reviews, scroll below. more Aroha Nov 2020 ...Contact is an awesome power provider...Contact Customer service team are friendly, kind, prompt and very helpful. “Some changes seem perverse and poorly thought through, such as removing prompt payment discounts while retaining late payment fees. This means the customer receives a 1% invoice discount if the payment is submitted within 10 days. Feedback from Power Compare customers indicates that we fall into 2 clear groups when it comes to the ban on prompt payment discounts: Some companies, like Contact Energy and Meridian have already followed the government recommendation to remove prompt payment discounts. you get electrickery and gas from the one place, and you get a prompt payment discount (you might not get this by the sounds of it- ha ha). We can see this through reduced customer ‘churn’, improvement of credit performance, low disconnections, and anecdotal feedback,” said a spokesperson. A late payment fee of $25 may apply if you don’t pay your bill on time. Plus, you’ll get a 2% energy discount every month and the certainty of fixed energy rates. It had not increased prices over the winter, and had no plans to in the near future, a spokeswoman said. As long-standing Contact Energy customers over many years, Mr and Mrs Thomson pay their bills on time through the Post Shop by preference, receiving a 10 per cent discount. You will be the first to learn about new power deals and exclusive offers. ...Contact is an awesome power provider...Contact Customer service team are friendly, kind, prompt and very helpful. Click on the picture to see the original (it looks the same). Understanding Early Payment Discounts on Invoices. The Friends Extra Discount is a 5% discount on the unit charges of your Trustpower energy services, which you can opt into for a fixed term of 1, 3 or 5 years. Losing a prompt payment discount had happened to 59 per cent of Meridian customers. What is a prompt payment discount? The Government recently completed the Electricity Price Review – a comprehensive industry-wide review on how we are charged for our power. However, the review found that “prompt payment discounts” actually amounted to “late payment penalties” for those who struggle to pay their bill on time. 6 months to get rid of prompt payment discounts, Power Compare Christmas Opening Hours 2020. and you get brownie points to buy stuff (don;t ask me what but its free), and i am getting a daily charge rebate off the gas of .45c . The Basic Plan, is Contact Energy’s simplest plan. Some companies, like Contact Energy and Meridian have already followed the government recommendation to remove prompt payment discounts. Contact Energy Prompt Payment discount - Page 4 Do you rely on a prompt payment discount to keep your power bill down? Energy Online. A percentage-based charge for late payment was not justified when it was a fixed recovery cost, Wilson said. Contact us; Broadband Compare helps you compare your broadband provider and plan to make a fully informed choice. In this game that’s a huge discount. “It can be confusing for consumers because it is presented as a discount but in effect it is marketing speak for a late payment penalty. Advising Contact Energy in relation to settling breaches of the Fair Trading Act regarding Contact Energy's Dual Energy and Prompt Payment Discounts. Via a secret source, Contact energy is offering 12% prompt payment discounts, up from 10%. Energy Minister Megan Woods has now written an "open letter" to power companies encouraging them to make changes, before she "proceeds down the track" of regulation. Trustpower offers several different ways to pay your bill so you can find the method that is right for you. Cheers! The report instead recommended banning prompt payment discounts and passing a standard discount on to everyone. You may also be charged by your bank or building society if you pay your energy bill by cash. Consumer NZ had not seen any examples of companies removing the discount and then inflating their prices, and “if anyone has got any suspicions we would be really keen to look at the data on it”. I just had an email from Contact Energy. Meridian Energy, New Zealand’s fourth-biggest power retailer by market share, replaced prompt payment discounts in October 2018, moving to lower “flat” rates, a move the company said cost it about $5 million a year which was not recovered elsewhere in customers’ bills such as a late payment fee. Whether you're moving home or just want to switch power companies, we've got a great energy solution to suit your needs. CODES (2 days ago) The most common prompt payment discount terms are 1/10 – net 30, 1/15 – net 30, 2/10 – net 30, and 2/15 – net 30. Electricity rates are the same as they normally are and you’ll always get your prompt payment discount. Some of New Zealand’s biggest power retailers still offer some form of prompt payment discount, nearly a year after the Government said it wanted to see major changes to them. Contact Energy Remove Prompt Payment Discounts and ... $150 off (2 days ago) Contact Energy are introducing a new Everyday Bonus Fixed Plan which will include a $150 off your first bill, 2% discount on energy bills, plus the certainty of fixed energy rates. Rival power retailers are likely to come under pressure to follow suit, with Contact Energy particularly exposed as it has led the market in raising the size of its prompt payment discount to … That’s a good thing, isn’t it? Contact Energy are introducing a new Everyday Bonus Fixed Plan which will include a $150 off your first bill, 2% discount on energy bills, plus the certainty of fixed energy rates. The 2% discount is not a prompt payment discount, it will always be applied. Consumer NZ head of research Jessica Wilson said the organisation asked companies a few months ago what they were doing and at that time most of the big power companies were using prompt payment discounts in some form. ... Meridian Energy is a New Zealand power company that generates electricity through 100% renewable sources – wind, water and sun. A PPD is a conditional discount offered by some retailers. Contact is one of New Zealand's leading energy generators and retailers, supplying electricity, natural gas and LPG to over 500,000 customers nationwide. Some power companies offer their customers a discount for paying their bill on time, which they call a prompt payment discount. Get unlimited broadband from $64.99/mth with no fixed term and no break fees. Is your power bill the lowest since 2015? New Zealand’s third-largest power retailer by market share, Mercury, still offers the prompt payment discount to customers who choose it or it can be exchanged for offers that do not have PPDs. It’s a great way to track your power usage and manage your budget. PPDs are widespread in the New Zealand electricity sector. “If a customer pays late and there are grounds to charge a late payment fee, that should reflect the actual costs that the company may incur, sending a reminder notice for example.”. Here are our opening hours for the 2020-2021 holiday season. “These discounts can … Those of you who have struggled to pay your bill on time, and would prefer power prices were lower for everyone in the first place. Apparently my prompt payment discount is to increase from 12% to 22% wef 1 August 2011. “At the same time as we stopped offering PPD plans to new residential customers, we also introduced a simpler set of plans which represents a fairer and more transparent energy market,” a spokeswoman said. How does your power... Change Some existing customers still had the discounts as part of legacy plans, which they could change. Discounts include 18% prompt payment discount when you pay on time, 2% discount if you are a DualEnergy customer, and a further 4% if you add broadband, get bills by email and pay by direct debit. and they charge pretty much what the others charge. said it wanted to see major changes to them. Subscribe to our newsletter to get Important news and amazing offers: A review of over 378,000 residential customers that switched power provider last year has revealed some interesting trends in the provider of choice for... Wishing you a happy holiday season and a great start to 2021! Rival power retailers are likely to come under pressure to follow suit, with Contact Energy particularly exposed as it has led the market in raising the size of its prompt payment discount to … Contact’s portfolio of long-life renewable generation assets continues to provide the Board confidence to distribute ordinary dividends which target a pay-out ratio of 100% of expected operating free cash flow. “Anything above 0 per cent is too much for power companies to offer, as the discounting comes at the expense of financially challenged customers,” he said. Cheers! Energy bill payment options We know you’ve got better things to do, so we make paying your power bill easy as. The discounts rewarded wealthier customers at the expense of those who struggled to pay, says MoneyHub's Christopher Walsh. The discount applies to your electricity and/or reticulated gas unit charges or LPG bottle delivery. Am I a Standard User or a Low user for Power? They were offered so widely that it was claimed that the price of power minus the prompt payment discount was the real power price. The main reason people did not switch power companies was because they did not find a price good enough to make them change, she said. Prompt payment discounts were introduced with good intentions, the company said, but they had come to disproportionately impact those who struggled to pay their bill from time to time. Contact Energy, second-biggest by market share, stopped offering prompt payment plans to new residential customers in May 2019. The Electricity Authority reforms last year also prevented electricity companies from offering last minute deals to dissuade customers from switching suppliers and jumping ship. Meridian and Contact to investigate potential ‘green hydrogen’ facility in lower South Island 11 December 2020. The Government estimated that consumers would be $45 million a year better off if power companies normalised pricing at the discounted level and only charged late-payers "reasonable fees" for the costs of chasing late payments. Check out our payment options below and choose the one that works best for you. The people who were penalised were those who struggle to pay their bills, or those who need a fair price for power the most. In other words, rather than charging a reasonable price for power in the first place – electricity charges were artificially inflated by the prompt payment discount. View them here. We will contact you as soon as possible. (2 days ago) Contact Energy are introducing a new Everyday Bonus Fixed Plan which will include a $150 off your first bill, 2% discount on energy bills, plus the certainty of fixed energy rates. There is no prompt payment discount available on this Plan. Note from 23 August we’ve updated our Credit Card Payment terms and conditions. “Since implementing a ‘guaranteed discount’ and later moving to the ‘naked rate’ or ‘flat rate’, Meridian has developed even stronger relationships with our customers. make changes to the prompt payment discounts, Mercury offered customer $320 credit to cancel switch on March 31, Here's what should happen if you lose your power prompt payment discount, Electricity firms given six months to change payment rules before Government steps in, tricity companies from offering last minute deals, Live: US President Donald Trump impeachment begins, Illegal earthworks create 'imminent risk' to six Napier properties, Staffer steals $170k from high-profile Christchurch criminal lawyers, Insurer asks student badly injured after being hit by ute to cough up for repairs, America's Cup: Team New Zealand's dramatic capsize explained, Quiz: Morning trivia challenge: January 12, 2021, Aussies back to old tricks: Steve Smith scuffs pitch, Tim Paine sledging under fire in heated final day of India cricket test at the SCG, Kiwi dad arrested in Singapore still to face justice two-and-a-half years on, Strict new border rules into New Zealand announced as Covid surges globally, Citycare worker killed in two-truck crash in Christchurch. For customers who regularly meet their payment deadlines, a prompt payment discount can help save hundreds of dollars each year. Investor news. The 2% discount is not a prompt payment discount, it will always be applied. The details of a PPD can vary depending on the industry, but generally it means that the supplier will provide a discount if the consumer meets certain conditions as specified in their contract. Conversely, there had been no sign of major price drops in the electricity sector either. The latest data from the Electricity Retailers’ Association reveals that Power bills are down $126. “In our view, it was not the major problem with pricing in the market,” Wilson said. In June, Woods wrote to retailers seeking answers to a number of questions, and officials were currently considering the responses, a spokeswoman for the minister said. The government has given Power Companies 6 months to get rid of prompt payment discounts under threat of regulation. The 2% discount is not a prompt payment discount, it will always be applied. There was an extra 2 per cent discount for customers who got their bill online and paid by direct debit. “The ability to pay a $200 or $300 power bill within the PPD period is not an option for many New Zealand families, so missing out on a 10 per cent, 12 per cent or even 18 per cent discount has always been unfair.”. Those of you who love your prompt payment discounts and are sceptical that the ban will result in savings that filter down to power customers. 1/10 – Net 30. And, customers can choose Contact Energy plans with additional rewards, for example 15c to 30c / litre off their fuels, or competitive rates when they bundle their broadband. Discounts and rewards with Energy Plus Join Genesis and get up to $200 credit plus great discounts and rewards on an Energy Plus Plan. Compare NZ power companies, compare features of different power plans and find the best power deals here at Power Compare. Depending on the plan, Contact Energy now offer discounts to all customers. The Basic Plan, is Contact Energy’s simplest plan. The lowest average since 2015. A common discount is 2/10 – net 30, which means buyers can earn a 2% discount by paying in 10 days. The review made several key recommendations intended to ensure that we pay a fair price for our power, and to make power more affordable for everyone. “Our view is that electricity is an essential service but there is a significant proportion of the population who struggle with their bills and are unable to heat their homes to the level they should be able to.”. Connecting with our customers Please note, we only show power reviews with comments. Most power companies have ditched the prompt payment discount but some of the biggest still offer them. Contact Energy has admitted breaching the Fair Trading Act in relation to misleading some customers about the amount payable for final bills. Contact Energy is one of New Zealand’s leading energy generators and retailers, providing electricity, natural gas and LPG to about 562,000 customers nationwide. In November, Energy Minister Megan Woods gave power companies six months to make changes to the prompt payment discounts (PPD) before the Government decided whether to regulate. Here at Power Compare we help you compare power companies to find the best power company and the best new power customer deals. About half its residential customers – about 185,000 – were on plans without the discount. Compare over 100 NZ internet service providers quickly, efficiently and for free. Lower prices overall for everyone was a much fairer approach, he said. Depending on the plan, Contact Energy now offer discounts to all customers. Electricity companies have long offered seemingly generous discounts to customers who pay their bills on time, but they were considered a marketing deception and late payment penalty by the Government, Consumer NZ and other consumer organisations. You should switch to Genesis. Energy Minister Megan Woods announced on Thursday the Government's response to the final Electricity Price Review which recommended prohibiting prompt payment discounts … $150 (incl. The Electricity Price Review last year estimated that consumers would be $45 million a year better off if power companies normalised pricing at the discounted level and only charged late-payers “reasonable fees” for the costs of chasing late payments. ... as this ensures prompt, regular payments. The 2% discount is not a prompt payment discount, it will always be applied. address. At Contact, chief customer officer Vena Crawley said it was removing its prompt payment discount, of anything from 10 and 24 per cent, for new … Why use Contact Energy? It … The latest offer from Contact offers up to $25 off the standard monthly cost of broadband when you bundle with energy on the Broadband Bundle plan. READ MORE: * Mercury offered customer $320 credit to cancel switch on March 31 * Here's what should happen if you lose your power prompt payment discount * Electricity firms given six months to change payment rules before Government steps in. (2 days ago) Contact Energy are introducing a new Everyday Bonus Fixed Plan which will include a $150 off your first bill, 2% discount on energy bills, plus the certainty of fixed energy rates. Or if you like the confidence of knowing exactly what you’ll be paying each month, opt for SmoothPay, which divides your energy cost evenly so you can pay the same amount each month. 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