Is this the first response to Powershop? Via a secret source, Contact energy is offering 12% prompt payment discounts, up from 10%. In this game that’s a huge discount. Click on the picture to see the original (it looks the same). I don’t get the “no credit card” rule though – at least not from the customer’s perpective. The credit card companies take less than 2% commission, and payment is made to Contact on the same day, so why not give a 10% discount to those on auto-payment via credit card? It’s hard to set up a direct debit (especially for those like me with the inability to handle paper transactions), so I can see the reason for an incentive. But it is scary just how much Contact is giving away here – it is saying a lot about their current margins. It’s good to see a reaction, if that is what it is. Keep the sign-ups to Powershop coming, and let’s make the retail electricity market a bit more dynamic.
Powershop aims to open up the retail electricity market, and make it easy to select the cheapest deal. The prices are right, and you can sign up to Powershop via Flowerpower now – and get $20 of free power. FlowerPower is a PowerKiwi Limited product, and I’m a co- founder of that company.