Powershop

Powershop is an online electricity retailer, founded in New Zealand and also available in Australia and the United Kingdom. Powershop is a subsidiary of Meridian Energy which is 51% owned by the New Zealand government. The retailer operates through an online platform offering pre-pay and post-pay options.

Powershop NZ
Type of businessSubsidiary
Founded2007
Headquarters
Wellington
,
New Zealand
Area servedIn New Zealand: Auckland, Hamilton, Tauranga, Rotorua, Taupo, Napier, New Plymouth, Wanganui, Palmerston North, Wairarapa, Wellington, Christchurch, Dunedin, Queenstown, Invercargill
Founder(s)Ari Sargent
Key peopleMargaret Cooney, Head of Powershop
IndustryElectricity retailing
ProductsElectricity
EmployeesOver 200
ParentMeridian Energy Limited
URLpowershop.co.nz
Powershop Australia
Founded2012
Headquarters
Melbourne
,
Australia
Area servedIn Australia: Victoria, New South Wales, South East Queensland and South Australia.
Key peopleEd McManus, CEO
IndustryElectricity retailing
ProductsElectricity & Gas
Employees150
ParentMeridian Energy Limited
URLpowershop.com.au
Powershop UK
Founded2016
Headquarters
Birmingham
,
United Kingdom
Area servedIn the United Kingdom: England, Wales and Southern Scotland
Key peopleDavid Winter, Head of Powershop UK
IndustryEnergy retailing (Electricity, Gas)
ProductsElectricity, Gas
Employees10–50
ParentNPower
URLpowershop.co.uk

History

Meridian traditionally had been a major electricity generator, but only a small retailer.[1] In 2006, Ari Sargent, an electricity industry veteran, had an idea to increase Meridian's market share in the retail market: turn electricity from a utility into a consumer good.[2] Initially, it was planned to sell electricity tokens in supermarkets, but that idea was scrapped due to cost and they turned the idea to the Internet.

Sargent, 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$1.26 million in stock.[3] After 14 months of private beta, it officially launched to the public on 22 February 2009 and was unofficially available in the weeks prior.[4]

Reception

Powershop planned on 4–50,000 customers in its first year.[5] Powershop achieved 5000 customers in October 2009,[6] and 10000 customers in February 2010.[7] CEO Ari Sargent blamed this on inertia and general distrust of power companies.[8] 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.[9] The Consumers' Institute of New Zealand welcomes initiatives to increase retail power competition.[10]

In a 2009 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 was the second cheapest in Whanganui and Wairarapa.[11][12]

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.[13] In 2010, it again received a 92% satisfaction rating. In 2011 and again in 2012, it gained a 96% customer satisfaction rating.[14]

It was the best company in Consumers' Institute of New Zealand's 2011 survey of electricity companies.

In Australia, Powershop is ranked 1st of 15 companies for customer service tracked by social media tracking website, servicerage.com.[15]

References
  1. http://www.electricitycommission.govt.nz/pdfs/opdev/retail/regstats/regstatspdfs/percenticps/Oct09-Appendix1.html Archived 23 May 2010 at the Wayback Machine ICP per retailer 9 October – Electricity Commission
  2. http://www.idealog.co.nz/magazine/20/power-trip
  4. Juha Saarinen (17 February 2009). "Website plans to disrupt the power supply market". NZ Herald.
  5. "Slow take-up to Powershop services". NZ Herald. 26 March 2009.
  6. Powershop NZ [@powershop] (29 October 2009). "we have just hit the 5000 customer mark - we're stoked :)" (Tweet) – via Twitter.
  7. Powershop NZ [@powershop] (15 February 2010). "we've popped the corks on the bubbles. we now have 10,000 customers. thanks for your support folks :)" (Tweet) – via Twitter.
  8. https://www.webcitation.org/5jm6F6m2j?url=http://www.odt.co.nz/news/dunedin/73737/customers-reluctant-switch
  9. "New power company promises no contracts, no line charges and no hassle". Campbell Live. TV3. 20 April 2009. Retrieved 20 April 2009.
  10. "New way to buy power". Consumers' Institute of New Zealand. 25 February 2009. Retrieved 10 June 2009.
  11. Churchouse, Nick (2 October 2009). "Powershop shown to be the cheapest". The Dominion Post. Retrieved 4 November 2011.
  12. Quarterly Survey of Domestic Electricity Prices: Updated to 15 August 2009
  13. Archived 6 December 2009 at the Wayback Machine
  14. "Archived copy". Archived from the original on 6 January 2010. Retrieved 3 December 2009.CS1 maint: archived copy as title (link)
  15. http://servicerage.com/energy
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