Powershop Review - 2023 Prices, Discounts, Deals, Tariffs and Fees
Our guide explains Powershop's pricing, bonuses, contracts, pros and cons and must-know facts, and how it compares to other power companies for residents of Auckland, Hamilton, Wellington, Christchurch and Dunedin.
Updated 11 September 2023
Powershop in a Nutshell
Our review: To help you understand how Powershop works and the pros and cons of their plans and powerpacks, our guide covers:
Powershop in a Nutshell
- Powershop is a New Zealand energy company that has been in operation since 2009 and is backed by Meridian Energy. It currently has more than 95,000 residential and business customers across the country.
- Powershop's objective has always been to "give customers more control over their energy needs", to this end they have created a platform to let users buy their energy from an online shop in 'powerpacks' instead of subscribing to a specific plan. This is most likely why the company is called "Powershop".
- Plans and Pricing: Powershop offers fixed prices and seasonal specials, and powerpacks can be purchased in advance or after the energy has been used.
- Our power company comparison research concluded that Powershop is one of the most price competitive energy providers for both low and standard users in Auckland, Hamilton, Wellington, Christchurch and Dunedin.
Our review: To help you understand how Powershop works and the pros and cons of their plans and powerpacks, our guide covers:
MoneyHub Founder Christopher Walsh shares his views around power pricing and Powershop's unique offer:
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"As I say in a recent Stuff.co.nz column, electricity comparisons can be complicated. Many MoneyHub users have asked us about what electricity provider is the cheapest. The answer isn’t simple – it depends on where you live and whether you’re a low user or a standard user. But even then, there’s a lot of ways the industry makes it near-impossible to compare like for like. The good news is Powershop is much easier to understand and I am a big fan".
"Powershop is innovative, transparent and a welcome addition to a crowded power provider market. While you won't get free hours of power or early payment discounts, you will have the option of prepaying power to lock in savings for future use". "It's important to know that Powershop is not a prepaid power company and you won't be cut off if you don't buy powerpacks. It is designed to help New Zealanders budget for power in advance and lock in market-leading rates". "Powershop prices average to good in most locations we've price tested, but the pricing listed assumes you are regularly buying the staying power powerpacks and the seasonal specials (these are explained below and unique to Powershop)". "Personally, I'm a fan of Powershop and can see why it's popular with tens of thousands of New Zealanders. For more details, I suggest starting here". |
MoneyHub Founder
Christopher Walsh |
Our Price Leading Power Companies - Fixed Term and Open Term
Getting quotes is an essential step before you switch. Our pricing tables and power comparison research look at average uses, Genesis leads with fixed-term offers and Flick leads with open terms.
Fixed Term: Special Offer With Our Partner Genesis - Rewarding New Zealanders Who Commit to a Great Value Genesis 12-Month Contract:
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Open Term: Special Offer With Our Partner Flick - Putting the Power Back in Customers Hands:
Looking for more information about power prices? Visit our comprehensive Power Company Comparison guide. |
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1. Powershop Energy Prices Comparison (Auckland, Hamilton, Wellington, Christchurch and Dunedin)
Our Price Comparison Research and Results:
- Our latest research revealed that Powershop's plan for all major cities offered some of the cheapest electricity prices. Specifically, Powershop is one of the cheapest energy suppliers for low and standard users in Auckland, Hamilton, Wellington, Christchurch and Dunedin. Our power comparison guide has more details.
- Powershop offers a sign-up bonus, refer a friend bonus and a guaranteed savings policy.
- We believe Powershop 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 Powershop's prices with the rest of the market here.
Know This: How Renewable is Powershop's Power?
Powershop is owned by Meridian Energy. All the electricity generated by Meridian Energy comes from 100% renewable sources such as wind, water, and sun. Meridian generates approximately 30% of New Zealand's power, most of it from its hydropower stations located at Waitaki and Manapōuri responsible for producing over 13,000 GWh/year.
In addition to these generators, Meridian also owns and operates several wind farms located at Brooklyn, White Hill, West Wind, Mill Creek. Te Āpiti, and Te Uku. Meridian also sells its surplus power to New Zealand wholesale electricity market so that other small retailers can get “clean power”.
In addition to these generators, Meridian also owns and operates several wind farms located at Brooklyn, White Hill, West Wind, Mill Creek. Te Āpiti, and Te Uku. Meridian also sells its surplus power to New Zealand wholesale electricity market so that other small retailers can get “clean power”.
2. Powershop Plans
Important:
- Powershop works differently than other energy companies and puts the customer in 'control' of their energy.
- It doesn’t offer set “plans”, instead users buy “powerpacks” (units of electricity in packs of power, of varying sizes in kwH and costs) either at the regular price or on special, from the online shop in advance or after having used the power.
- The packs are often discounted, and they estimate how many days of power they cover based on your current usage. For example, you may buy a $120 powerpack which covers an estimated 30 days of power use.
- If you don't buy a powerpack, or forget to top up, Powershop will charge the standard rates quoted initially when joining (like with a regular power company does), which it claims will be more expensive. However you pay for power (i.e. buying powerpacks or standard rates), the cost of energy depends on the your type of meter, where you live and when you use power.
Powershop Classic Plan Review
- There is only one Poweshop plan. When you sign up, you get access to Powershop’s online shop (which you can access via mobile or desktop). You will then be able to buy powerpacks, which you can use at the time of purchase or in the future. There are many types of powerpacks, which we describe below.
- Special powerpacks: There are “specials” every month, offered at a discount and with a topical or funny name. The mobile app can send you alerts when these are available in the shop. Some specials are always there (fixed-price Value Packs) and others are seasonal (Regular Specials). Buying these special powerpacks at a discount and in advance might help you save money on energy throughout the year.
- Staying power: This is a special powerpack that provides about 5 days of power. It offers one the bigger discounts (at least 20%) and arrives in the shop at the start of each month. This is a kind of loyalty offer; the discount increases by 1% with every year you stay with Powershop (capped at 25% discount).
- Future Packs: These are packs you can buy in advance and use them months later. The more in advance you buy these packs, the larger the discounts you’ll receive. The largest discount at the time of writing was 10% off for energy purchased six months in advance.
- Top Up Packs: These are powerpacks where you choose a specific dollar amount (without any discount). As well as energy top-ups, there are also charity donations and carbon offsets available in this form.
Powershop has a helpful article on how to maximise savings by purchasing a combination of powerpacks regularly.
Be Aware: As there are many different powerpacks, the more engaged and proactive you are with the purchasing of these packs, the larger the potential savings. Powershop encourages its customers to buy in advance and save, rewarding those who 'go big' in advance.
Know This: If you bought more power than you consumed for a particular month, the excess gets rolled on to the next month so you won't lose money on power you have pre-purchased. If you purchase a powerpack and you change your mind, you have 48 hours to get a refund online to your Powershop account (not your bank account), or contact their customer service if more than 48 hours have passed since you made the purchase.
The Powershop website helpfully explains what you need to know about their online shop and powerpacks.
3. Powershop Pros and Cons
Pros:
Cons:
Be Aware:
- Powershop offers extreme flexibility. You are able to choose to buy energy in advance at discounted rates and budget for your consumption up to 6 months in advance, buy fixed value specials that are always available, or do nothing and get the standard rates like with any other energy company.
- There's one plan, which is different from other power companies who offer multiple power plans which can create confusion.
- Less price risk - Powershop makes it clear that while their standard energy pricing is seasonal (to reflect the market price of electricity), it doesn't put customers at risk with unpredictable price spikes that come with spot pricing.
- Pricing is seasonal but always transparent. Power prices increase in autumn and winter (when demand is higher) and decrease over spring and summer. Powershop is clear in its marketing and monthly reporting that you can always see what your prices will be month to month.
- You choose when you pay your bill (within limits) and when you pay for the powerpacks you purchase (they also have a buy now pay later option).
- Comprehensive monthly reporting and a three-day period to buy powerpacks to cover any shortfalls (to avoid being charged at the standard rates).
- There are no fixed contracts.
- You can use the Powershop app to monitor your account, make payments and buy powerpacks.
- You don’t need a smart meter. While it is easier to have a smart meter installed, you can still join Powershop if you have an analogue meter.
Cons:
- If you just “set and forget”, you’ll miss out on savings. More engagement is needed from you than with other companies if you want to fully benefit from special promotions and rates.
Be Aware:
- While Powershop’s standard rates are very competitive, if you want to make the most of the discounts on offer, you’ll need to be rather active with your account management to take advantage of the 'deals' and 'discounts' offered via powerpacks.
4. Powershop - Our Conclusion
Powershop offers a simple-to-understand way to save on your monthly electricity bill. However, it also takes some time to get used to if you plan to buy powerpacks to fund your usage. Before you join, you’ll need to consider the following:
- Your total energy consumption (kWh) per year (low user vs standard user): As with any other power company, your annual usage will determine which options suit you best. If your household consumes below 8,000 kWh/year (9,000 kWh/year for southern regions of South Island) you’d probably be better off choosing to be a low user; if your consumption is above that threshold, you’ll probably be more suited to be a standard user. Powershop states that they "regularly review whether you are on the correct pricing for your usage and will put you on the best option for your situation". They also state that they will "let you know every year on your Powershop anniversary how much power you’ve used and what the best rate option is for you".
- Your engagement, lifestyle and convenience: The next thing you should consider is how involved you want to be in choosing your energy. As mentioned before, to make the most of Powershop, you’ll need to check the shop often to get special powerpacks at discounted prices. The more in advance you purchase, the more you’ll save. If you don’t want to check the app and the shop too often, you will still get a competitive price but will miss out on discounts.
- Additional benefits: Powershop currently offers the following perks which reduces the overall price of joining or switching over:
- A generous sign-up bonus ($150 spread throughout the year: $25 on your first month, $10 for the following ten months and a final $25 on your twelfth month. Full details here).
- A friend-referral programme ($100 for each friend who signs up, details here). There is no limit to how many friends you can refer.
5. Powershop - Frequently Asked Questions
To help you decide if Powershop is right for your home, we've published a number of frequently asked questions:
What does Powershop 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 comparison guide has more information about estimated costs and how it compares to other companies.
Is Powershop available at my address?
To find out, you'll need to type in your address to see if you're covered. Most of New Zealand is, but the tool will quickly let you know.
Does Powershop offer prompt payment discounts?
No. Powershop offers discounts by way of its online shop where customers can buy regular discounted powerpacks throughout the month. Powerpacks are always cheaper than the standard pricing charged to customers who don't buy powerpacks.
What does a Powershop bill look like, and how do I pay?
- The video below explains Powershop's billing process. Three days prior to your monthly bill being issued, you'll receive an "account review" that will show if you have used more energy than you have purchased, this will give you a chance to buy the necessary powerpacks to make up the difference.
- If you don't purchase additional packs, Powershop will bill you for that energy at your standard rate. The video below also walks you trough what information can be found on your power bill. This page outlines how you can pay for powerpacks.
Related Guides
Our Price Leading Power Companies - Fixed Term and Open Term
Getting quotes is an essential step before you switch. Our pricing tables and power comparison research look at average uses, Genesis leads with fixed-term offers and Flick leads with open terms.
Fixed Term: Special Offer With Our Partner Genesis - Rewarding New Zealanders Who Commit to a Great Value Genesis 12-Month Contract:
|
|
Open Term: Special Offer With Our Partner Flick - Putting the Power Back in Customers Hands:
Looking for more information about power prices? Visit our comprehensive Power Company Comparison guide. |
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