So that so-called prompt payment rate, everyone should be getting that,” she said. 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. Energy Minister Megan Woods announced on Thursday the Government's response to the final Electricity Price Review which recommended prohibiting prompt payment discounts … “Since implementing a ‘guaranteed discount’ and later moving to the ‘naked rate’ or ‘flat rate’, Meridian has developed even stronger relationships with our customers. You should switch to Genesis. 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. 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. Contact PrePay is our new service that lets you pay for your electricity up front, just like a prepaid mobile phone. Whether you're moving home or just want to switch power companies, we've got a great energy solution to suit your needs. “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.”. more Aroha Nov 2020 ...Contact is an awesome power provider...Contact Customer service team are friendly, kind, prompt and very helpful. Cheers! Contact Energy, second-biggest by market share, stopped offering prompt payment plans to new residential customers in May 2019. 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. Do you rely on a prompt payment discount to keep your power bill down? Trustpower offers several different ways to pay your bill so you can find the method that is right for you. Energy Online. 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. 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. Trustpower has removed the discounts from all new plans, and the company is in the process of removing them from existing customers’ plans. Contact us; Broadband Compare helps you compare your broadband provider and plan to make a fully informed choice. The Basic Plan, is Contact Energy’s simplest plan. Get unlimited broadband from $64.99/mth with no fixed term and no break fees. Investor news. 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. Contact is one of New Zealand's leading energy generators and retailers, supplying electricity, natural gas and LPG to over 500,000 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. There is no prompt payment discount available on this Plan. Click on the picture to see the original (it looks the same). There was an extra 2 per cent discount for customers who got their bill online and paid by direct debit. $150 (incl. It … 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. 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. 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. 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. Advising Contact Energy in relation to settling breaches of the Fair Trading Act regarding Contact Energy's Dual Energy and Prompt Payment Discounts. PPDs are widespread in the New Zealand electricity sector. It’s a back to basics, hassle-free plan. We will contact you as soon as possible. “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. For individual Contact Energy reviews, scroll below. The report instead recommended banning prompt payment discounts and passing a standard discount on to everyone. “In our view, it was not the major problem with pricing in the market,” Wilson said. Most customers chose to join Mercury with a prompt payment discount but about 30 per cent chose another offer, a spokesperson said. 6 months to get rid of prompt payment discounts, Power Compare Christmas Opening Hours 2020. Compare power companies NZ wide on Power Compare. said it wanted to see major changes to them. Electricity is an essential service, says Consumer NZ, and many people struggle with their bills. 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. GST) off your first bill 2% discount on your energy charges Fixed energy rates until 31 October 2022 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 … A percentage-based charge for late payment was not justified when it was a fixed recovery cost, Wilson said. ... Meridian Energy is a New Zealand power company that generates electricity through 100% renewable sources – wind, water and sun. 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 … We can see this through reduced customer ‘churn’, improvement of credit performance, low disconnections, and anecdotal feedback,” said a spokesperson. Discounts and rewards with Energy Plus Join Genesis and get up to $200 credit plus great discounts and rewards on an Energy Plus Plan. The 2% discount is not a prompt payment discount, it will always be applied. For FY19 this equated to 39 cents per share, compared to the 32 cents per share declared for FY18. They were offered so widely that it was claimed that the price of power minus the prompt payment discount was the real power price. “These discounts can … The Basic Plan, is Contact Energy’s simplest plan. The Electricity Authority reforms last year also prevented electricity companies from offering last minute deals to dissuade customers from switching suppliers and jumping ship. Electricity rates are the same as they normally are and you’ll always get your prompt payment discount. The discount applies to your electricity and/or reticulated gas unit charges or LPG bottle delivery. Energy Online offers electricity and gas separate services, in addition to bundles. Please note, we only show power reviews with comments. 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. 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. The discounts rewarded wealthier customers at the expense of those who struggled to pay, says MoneyHub's Christopher Walsh. It had not increased prices over the winter, and had no plans to in the near future, a spokeswoman said. ... Get up to $150 credit and up to 11% monthly discount with this exclusive power deal. Direct Debit is an easy option that you can set to make payments automatic each month. 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! Standard acceptance criteria apply. View them here. Note from 23 August we’ve updated our Credit Card Payment terms and conditions. About half its residential customers – about 185,000 – were on plans without the 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. and they charge pretty much what the others charge. How does your power... Change New Zealand’s third-largest power retailer by market share, Mercury, still offers the prompt payment discount to customers who choose it or … The government has given Power Companies 6 months to get rid of prompt payment discounts under threat of regulation. What is a prompt payment discount? ... so they are able to offer you a discount. “Some changes seem perverse and poorly thought through, such as removing prompt payment discounts while retaining late payment fees. 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. 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. The lowest average since 2015. “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. 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. Some existing customers still had the discounts as part of legacy plans, which they could change. The Basic Plan, is Contact Energy’s simplest plan. 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 … 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. The people who were penalised were those who struggle to pay their bills, or those who need a fair price for power the most. The 2% discount is not a prompt payment discount, it will always be applied. Energy bill payment options We know you’ve got better things to do, so we make paying your power bill easy as. 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. Compare NZ power companies, compare features of different power plans and find the best power deals here at Power Compare. Contact Energy Prompt Payment discount - Page 4 If there is a conflict between our General Terms and the Special Terms of this Plan, the terms of this Plan will apply. This does not apply to other charges including Fixed charges and Market Fees. In this game that’s a huge discount. Apparently my prompt payment discount is to increase from 12% to 22% wef 1 August 2011. Here at Power Compare we help you compare power companies to find the best power company and the best new power customer deals. Some power companies offer their customers a discount for paying their bill on time, which they call a prompt payment discount. 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! 1/10 – Net 30. A common discount is 2/10 – net 30, which means buyers can earn a 2% discount by paying in 10 days. Check out our payment options below and choose the one that works best for you. ... as this ensures prompt, regular payments. This means the customer receives a 1% invoice discount if the payment is submitted within 10 days. However, the review found that “prompt payment discounts” actually amounted to “late payment penalties” for those who struggle to pay their bill on time. Lower prices overall for everyone was a much fairer approach, he said. 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. 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