Contact Energy Review
Our comprehensive guide compares Contact Energy's electricity plans and outlines the bonuses, contracts, pros and cons and must-know facts
Updated 10 May 2022
Know This First - Contact Energy's kWh pricing and daily charges vary considerably throughout New Zealand. For up-to-date pricing comparisons and tools to help you find the cheapest deal, please use our electricity company comparison guide.
Contact Energy in a Nutshell
Our review: To help you understand how Contact Energy works and the pros and cons of their plans, our guide covers:
Contact Energy in a Nutshell
- Contact Energy Limited is New Zealand’s second-largest electricity retailer by market share after Genesis
- As the largest power generating company in New Zealand, Contact is able to offer its services nationwide providing energy to more than 350,000 Single Installation Control Points (ICPs), representing 19.5% of the total retail electricity market
- Plans and Pricing: Contact Energy offers a number of plans: the Simplicity Bundle plan which includes gas and energy in one bill, the Basic Plan (for both low and standard energy users), the Everyday Bonus Fixed Plan (which includes a hefty signup bonus and a discount on energy charges), the Good Nights plan which offers 3 hours of free energy every weeknight (9pm to midnight); the Bach Plan which is an “only pay what you use” energy plan and finally the Fuel Rewards Plus plan which offers discounts on fuel or the option to convert them to Qantas Points or carbon offsets.
- Our power company comparison research concluded that Contact Energy is one of the most price competitive for both low and standard users in Auckland, Wellington, Christchurch and Dunedin. In several instances, it topped our pricing tables for both low and standard users.
- If you are generating your own power, you can also opt for Contact’s Alternative Energy programme to sell any surplus energy back to the grid and save on your bill.
Our review: To help you understand how Contact Energy works and the pros and cons of their plans, our guide covers:
1. Contact Energy Prices
Our Research:
- In April 2022, our research revealed that Contact Energy was very competitive for standard and low users in a number of cities.
- We believe Contact Energy offers opportunities for many households to make market-leading monthly savings on their energy bills. However, as with any power company, the exact prices depend on where you live in New Zealand and how much energy you use.
- Compare Contact Energy's prices with the rest of the market here.
How green is Contact Energy?
- Approximately 84% of the power generated by Contact Energy comes from renewable sources. Currently, Contact Energy owns and operates two geothermal plants located at Waikato (698 GWh/year), three geothermal plants located at Taupō (2,559 GWh/year), and two hydroelectric plants located at Otago (4,231 GWh/year).
- The remaining 16% of the energy though is generated from three gas-based thermal plants, two of them located at Taranaki (1220 GWh/year) and one in Waikato (196 GWh/year), as well as one diesel-based thermoelectric plant located at Hawke’s Bay (5 GWh/year).
- While it is true that those plants are not eco-friendly, worth mentioning that Contact is considering building an additional geothermal power station in Taupō as part of its environmental sustainability strategy.
2. Contact Energy Plans - "Basic" vs "Everyday Bonus" vs “Bach”
Contact Energy is currently offering three residential plans, the Basic Plan, the Everyday Bonus Fixed Plan, and the Bach Plan. Both the Basic and the Everyday Bonus plans are available for standard and low users whereas the Bach plan, being usage-based, does not apply to residential homes permanently occupied.
Contact Energy Basic Plan Review
- The Basic Plan is aimed at both, low and standard users, looking for a flexible hassle-free plan with no fixed term and transparent pricing
- Given its flexible nature, the Basic Plan has higher daily and variable charges than other Contact Energy plans
- To get the most out of this plan, you should feel comfortable both managing your bill and making your payments online.
The Pros:
- Great flexibility, no fixed terms or cancellation fees
- Transparent pricing, you can check your bill details as well as your household power usage through Contact app
The Cons:
- No additional discounts whatsoever
- Higher variable charges than Contact Everyday Bonus plan
- Higher daily charge when compared to Contact Everyday Bonus plan
Be aware:
- The Basic Plan is only available when using as payment methods Contact SmoothPay, Contact ControlPay, or Contact PrePay
- This plan is not available for PrePower customers
- Additional fees apply if you decide to receive a paper bill instead of an online bill, or you pay by credit card.
Contact Energy Everyday Bonus Fixed Review
- Contact Energy Everyday Bonus plan is aimed at Kiwis that favour the certainty of a fixed electricity bill amount over the flexibility offered by Contact Basic plan
- The Everyday Bonus Fixed plan offers Contact Energy’s lowest daily and variable rates for a 24-month period.
- Contrary to the Contact Basic Plan, this plan does have an “early cancellation fee” of $150, however, it also has a $150 “welcome bonus” off your first bill that somewhat compensates that fee.
The Pros:
- Contact Energy's lowest rates fixed for 24 months
- 2% fixed discount on all energy charges
Cons:
- If you cancel the 24-month contract, you will have to pay an early termination fee of $150 (including GST)
- With the Everyday Bonus Fixed plan, you are tied to Contact for a 2-year period which is more than the usual 1-year contract offered by other retailers
Contact Energy Bach Plan Review
- As its name implies, Contact Energy’s Bach Plan is specifically targeted at the tens of thousands of baches and cribs
- The plan is a special contract with no fixed term or daily charge, and you must have an existing contract with Contact for your main residence
- Just like the Contact’s Basic Plan, there is no termination fee if you cancel the contract
The Pros:
- No daily charges, meaning potential savings when you are not using your bach
- Special contract conditions where “you only pay for what you use”
- No fixed terms and no early termination fees
Cons:
- This plan charges you with the highest variable rates of Contact, so depending on how often you visit your bach (and the power consumption of your appliances) you might want to consider a Basic Plan instead
- The Bach plan only applies to bach and cribs equipped with Smart Meters
Be aware:
- If your bach or crib is located in the central North Island and your power is routed through The Lines Company then you will be charged for network and metering daily charges.
Good Nights Plan Review
This plan provides three hours of free power every night (9pm to 12am). Available only to users with smart meters. Fixed term and energy rates.
The Pros:
The Cons:
The Pros:
- Three hours of free power every night, can save money by scheduling appliances to run at this time
- Able to track energy usage on the Contact App
The Cons:
- Only available to smart meter users, check if you’re eligible here
- Fixed term
Fuel Rewards Plus
With this plan you get 30 cents off per litre of fuel once a month (maximum 50 Litres) or turn this discount into Qantas Points or carbon offsets. Once accumulated, discounts must be redeemed by the end of the following calendar month.
The Pros:
The Cons:
The Pros:
- Up to $15 savings on fuel per month (30 cents, on 50 Litres) or 22,500 Qantas points per month (15 points for every one cent you convert).
- Able to track energy usage on the Contact App
The Cons:
- Rewards must be used by the end of the following month and redeemed in full (one single fill at the pump)
- Fixed contract, exit fees apply
Simplicity Bundle Review
Offers the option to bundle energy and gas in one bill. The main benefit is that there are no daily gas charges on this package. Available only for natural gas customers in the North Island who consume at least 2,000 kWh per year. No fixed-term contracts, no break fees.
The Pros:
The Cons:
The Pros:
- No daily gas charges (only variable gas charges and fixed and variable electricity charges)
- No fixed term, no break fees
- Electricity and Gas charges in a single bill
The Cons:
- Only available in the North Island, for moderate natural gas users (at least 2,000kWh per year)
- Higher variable daily charge for gas
3. Contact Energy Conclusion
To determine which plan best suits your needs, you’ll need to consider the following:
- Lifestyle and convenience: Our view is that your lifestyle plays a crucial role in deciding which Contact Energy plan is better for you. The Everyday Bonus plan clearly aims at New Zealanders more worried about saving money than anything else. Signing a 24-month contract is compensated by the lower rates. The Basic plan on the other hand is probably more likely to appeal to renters who are not certain about staying 2-years in the same house. Regarding the Bach plan, depending on how often you use your holiday house it could be a viable solution for savings. The Good nights plan is a good option for people who can shift their consumption to the night time to make use of the 3 full hours of power and a reasonable fixed term commitment.
- Additional benefits: Aside from its electricity plans, Contact Energy also offers broadband, piped gas, and bottled gas services. While you can obtain interesting discounts by subscribing to Contact's "service bundles" some of these bundles are subject to the type of electricity contract you have (fixed or open-term). Simply put, your choice of electricity plan will affect the choices available for the other Contact services.
4. Contact Energy Frequently Asked Questions
To help you decide if Contact Energy is right for your home, we've published a number of frequently asked questions.
What does Contact Energy cost per month, and is it the cheapest?
What you pay depends on where you live, how much energy you use and what plan you're on. Our electricity company comparison guide has more information about estimated costs and how it compares to other companies.
Is Contact Energy available at my address?
Most likely - you'll need to type in your address to see if you're covered.
What does a Contact Energy bill look like, and how do I pay?
This overview explains how the bill appears, what everything means and when it's due. Contact Energy accepts direct debits and credit cards - your can read more from their ways to pay your power bill guide.
Does Contact Energy use renewable sources of electricity?
Yes, in fact about 84% of the power generated by Contact Energy comes from geothermal and hydroelectric power stations. The two Otago hydroelectric plants generated in 2019 4,231 GWh while the geothermal power plants located at Waikato and Taupō generated 3,257 GWh in the same period.
However, Contact Energy also operates gas and diesel thermoelectric plants located in Taranaki, Waikato and Hawke's Bay, which together contributed 1,421 GWh of energy in 2021.
However, Contact Energy also operates gas and diesel thermoelectric plants located in Taranaki, Waikato and Hawke's Bay, which together contributed 1,421 GWh of energy in 2021.
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