Powershop
Encyclopedia
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. 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.
Powershop was found to be the cheapest electricity retailer for the typical consumer in the main centers by the Ministry of Economic Development. 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'.
into a consumer good. 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. In September 2008, Powershop bought its predecessor, Meridian Energy
's Marketplace Innovations Business Unit for NZ$1.26m in stock.http://www.companies.govt.nz/services-drm-web/RetrieveDocumentServlet.svt?documentId=3595803. After 14 months of private beta, it officially launched to the public on 22 February 2009 and was unofficially available in the weeks prior.
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. Customers can also credit their account at PostShops. As a launch promotion, a signup pack was sold at The Warehouse.
Powershop provides an API for 3rd party developers to write programs that work with it.
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.
One cent per unit will be donated to the rugby team. Rebadged Powershop.
s, but only for customers who already have one. It will not install smart meters for customers. Customers with Arc Innovation brand smart meters can get their readings updated daily. All customers in Christchurch with a smart meter
receives a rebate of 5c/unit (a discount of around 20%) for power used in weekends.
welcomes initiatives to increase retail power competition.
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.
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. In 2010, it again received a 92% satisfaction rating. In 2011, it gained a 96% customer satisfaction rating .
State-Owned Enterprises of New Zealand
State-owned enterprises in New Zealand are registered companies listed under Schedules 1 and 2 of the State-Owned Enterprises Act 1986...
online electricity retailer
Electricity retailing
Electricity retailing is the final process in the delivery of electricity from generation to the consumer. The other main processes are transmission and distribution.- Beginnings :...
. 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. 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.
Powershop was found to be the cheapest electricity retailer for the typical consumer in the main centers by the Ministry of Economic Development. It was the best company in Consumers' Institute of New Zealand
Consumers' Institute of New Zealand
- The history of Consumer :The Consumers’ Council was established in 1959 ‘to protect and promote the interest of consumers of goods and services’. In 1963 the name Consumers Institute was adopted and in 1967 it became a separate government funded entity...
's 2011 survey of electricity companies. 96% of Powershop customers found it 'good' or 'very good'.
History
Meridian traditionally had been a major electricity generator, but only a small retailer. 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 utilityPublic utility
A public utility is an organization that maintains the infrastructure for a public service . Public utilities are subject to forms of public control and regulation ranging from local community-based groups to state-wide government monopolies...
into a consumer good. 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. In September 2008, Powershop bought its predecessor, Meridian Energy
Meridian Energy
Meridian Energy Limited is a New Zealand state-owned electricity generator and retailer. The company generates the largest proportion of New Zealand's electricity, generating 32 percent of the country's electricity in the year ending 31 December 2009, and is the fourth-equal largest retailer, with...
's Marketplace Innovations Business Unit for NZ$1.26m in stock.http://www.companies.govt.nz/services-drm-web/RetrieveDocumentServlet.svt?documentId=3595803. After 14 months of private beta, it officially launched to the public on 22 February 2009 and was unofficially available in the weeks prior.
Using Powershop
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
Electricity meter
An electricity meter or energy meter is a device that measures the amount of electric energy consumed by a residence, business, or an electrically powered device....
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
Skype
Skype is a software application that allows users to make voice and video calls and chat over the Internet. Calls to other users within the Skype service are free, while calls to both traditional landline telephones and mobile phones can be made for a fee using a debit-based user account system...
and Twitter
Twitter
Twitter is an online social networking and microblogging service that enables its users to send and read text-based posts of up to 140 characters, informally known as "tweets".Twitter was created in March 2006 by Jack Dorsey and launched that July...
support are available. Customers can also credit their account at PostShops. As a launch promotion, a signup pack was sold at The Warehouse.
Powershop provides an API for 3rd party developers to write programs that work with it.
Products
- Everyday - can be used immediately, valid for 2–3 months, sold in blocks of 1 kWh.
- Powerpacks - electricity futuresFutures contractIn finance, a futures contract is a standardized contract between two parties to exchange a specified asset of standardized quantity and quality for a price agreed today with delivery occurring at a specified future date, the delivery date. The contracts are traded on a futures exchange...
that must be used later. - Specials - Sold in blocks of approximately one week's usage. Limited quantity available.
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.
Powershop
- Standard Power - Powershop bulk standard electricity (Everyday and Powerpacks) Powershop also offer specials during holidays.
Rugby teams
- Crusaders (Powerpacks nationwide with chance to win a signed jersey, Everyday at Christchurch)
- Otago RugbyOtago Rugby Football UnionThe Otago Rugby Football Union is the official governing body of rugby union for the Otago Region of New Zealand. The union is based in the city of Dunedin, and its home ground is Forsyth Barr Stadium. The top representative team competes in the ITM Cup, New Zealand's top provincial...
(Only available as Everyday at Dunedin)
Meridian
Meridian is a state owned enterprise, the parent company of Powershop.- Meridian - CarboNZeroCarboNZero programmeThe carboNZero programme is a greenhouse gas emissions reduction scheme that is administered and offered by Landcare Research, a New Zealand Crown Research Institute...
certified carbon neutralCarbon neutralCarbon neutrality, or having a net zero carbon footprint, refers to achieving net zero carbon emissions by balancing a measured amount of carbon released with an equivalent amount sequestered or offset, or buying enough carbon credits to make up the difference...
electricity by Meridian Energy (Everyday and Specials) - Meridian Crimson - CarboNZero certified carbon neutralCarbon neutralCarbon neutrality, or having a net zero carbon footprint, refers to achieving net zero carbon emissions by balancing a measured amount of carbon released with an equivalent amount sequestered or offset, or buying enough carbon credits to make up the difference...
electricity, with pohutukawaPohutukawaThe Pōhutukawa is a coastal evergreen tree in the myrtle family, Myrtaceae, that produces a brilliant display of red flowers made up of a mass of stamens. The Pōhutukawa is one of twelve Metrosideros species endemic to New Zealand...
and rataRataRata may refer to:* Plants of the genus Metrosideros from New Zealand, including** Metrosideros robusta ** Metrosideros bartlettii ** Metrosideros carminea...
conservation sponsorship (Everyday only)
PowerKiwi
PowerKiwi is a new power company started by a group of New Zealand bloggers. Currently, they buy electricity wholesale from Powershop.- Flower Power - cheap power "you can be happy with" (Everyday and Specials)
- The Green Power Company - Voluntary Carbon StandardVoluntary Carbon StandardThe Verified Carbon Standard formerly the Voluntary Carbon Standard is a quality standard for voluntary carbon offset industry. Based on the Kyoto Protocol's Clean Development Mechanism, VCS establishes criteria for validating, measuring, and monitoring carbon offset projects....
carbon offsetCarbon offsetA carbon offset is a reduction in emissions of carbon dioxide or greenhouse gases made in order to compensate for or to offset an emission made elsewhere....
ed electricity (Everyday only) - Tree Power - a tree is plantedTreeplantingTree planting is the process of transplanting tree seedlings, generally for forestry, land reclamation, or landscaping purposes. It differs from the transplantation of larger trees in arboriculture, and from the lower cost but slower and less reliable distribution of tree seeds.In silviculture the...
for every 30 kWh purchased (Everyday only)
Airshed
Airshed is a specialist carbon management company.- Airshed Energy - CDM Gold StandardCDM Gold StandardThe Gold Standard is the world's only independent standard for creating high-quality emission reductions projects in the Clean Development Mechanism Joint Implementation and Voluntary Carbon Market. It was designed to ensure that carbon credits are not only real and verifiable but that they make...
carbon offsetCarbon offsetA carbon offset is a reduction in emissions of carbon dioxide or greenhouse gases made in order to compensate for or to offset an emission made elsewhere....
ed electricity (Everyday only) - Airshed Energy for Business - CDM Gold StandardCDM Gold StandardThe Gold Standard is the world's only independent standard for creating high-quality emission reductions projects in the Clean Development Mechanism Joint Implementation and Voluntary Carbon Market. It was designed to ensure that carbon credits are not only real and verifiable but that they make...
carbon offsetCarbon offsetA carbon offset is a reduction in emissions of carbon dioxide or greenhouse gases made in order to compensate for or to offset an emission made elsewhere....
ed electricity pre-approved by CarboNZero (Everyday only)
Metering
All customers with a normal non-prepay electricity meter and an internet connection can join Powershop, no special equipment is needed. 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 meterSmart meter
A smart meter is usually an electrical meter that records consumption of electric energy in intervals of an hour or less and communicates that information at least daily back to the utility for monitoring and billing purposes. Smart meters enable two-way communication between the meter and the...
s, but only for customers who already have one. It will not install smart meters for customers. Customers with Arc Innovation brand smart meters can get their readings updated daily. All customers in Christchurch with a smart meter
Smart meter
A smart meter is usually an electrical meter that records consumption of electric energy in intervals of an hour or less and communicates that information at least daily back to the utility for monitoring and billing purposes. Smart meters enable two-way communication between the meter and the...
receives a rebate of 5c/unit (a discount of around 20%) for power used in weekends.
Reception
Powershop planned on 4-50,000 customers in its first year. Powershop achieved 5000 customers in October 2009, and 10000 customers in February 2010. CEO Ari Sargent blamed this on inertia and general distrust of power companies. 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. The Consumers' Institute of New ZealandConsumers' Institute of New Zealand
- The history of Consumer :The Consumers’ Council was established in 1959 ‘to protect and promote the interest of consumers of goods and services’. In 1963 the name Consumers Institute was adopted and in 1967 it became a separate government funded entity...
welcomes initiatives to increase retail power competition.
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.
In Consumers' Institute of New Zealand
Consumers' Institute of New Zealand
- The history of Consumer :The Consumers’ Council was established in 1959 ‘to protect and promote the interest of consumers of goods and services’. In 1963 the name Consumers Institute was adopted and in 1967 it became a separate government funded entity...
'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. In 2010, it again received a 92% satisfaction rating. In 2011, it gained a 96% customer satisfaction rating .
Trivia
- The call centre is based at MastertonMastertonMasterton is a large town and local government district in the Wellington Region of New Zealand. It is the largest town in the Wairarapa, a region separated from Wellington by the Rimutaka ranges...
. - Marketing company: DNA
- IT company: YouDo , Able Technology