Overhead costs kept to a minimum

Payless Energy customer Tracey England unloads clothes from her drier as her son Brad (15) works...
Payless Energy customer Tracey England unloads clothes from her drier as her son Brad (15) works on his homework in their Dunedin home. Photo by Linda Robertson.
Radek Mierzejewski.
Radek Mierzejewski.

Sustainable costs are important for a budget-conscious family.

Tracey England, of Caversham, said she switched to a Dunedin independent electricity retailer about two years ago, soon after it launched.

Her switch followed what she described as an ''appalling'' bill from one of the nation's big electricity retail companies.

''I've never looked back.''

The independent company is Payless Energy, one of several new entrants in the region's electricity retail market.

The company's finance director, Radek Mierzejewski, said the idea for the company came from his parents, professional engineers Paul and Chessa Mierzejewski, who between them had more than 50 years' experience in the electricity industry.

The Mierzejewski family decided to use their experience to create a company to provide cheaper electricity for Dunedin, he said.

The company had more than 550 customers, and employed five staff, and had not changed its retail price since entering the market.

Payless Energy used the same model as the big companies, but made savings by keeping overhead costs to a minimum.

Mr Mierzejewski, a former Otago Boys' High School pupil, said he wanted the business to grow sustainably - because too fast, the service levels could fall, or prices might need to be increased.

The company did not have national ambition, as the ''55,000 potential customers'' in Dunedin provided enough opportunity for business growth, he said.

The company extended its coverage to customers in Central Otago in January last year.

Mr Mierzejewski said he was confident, the company could continue competing with the big electricity retailers because Payless Energy staff worked for smaller pay packets and relied on ''word of mouth'' for new customers, rather than big marketing budgets.

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