Power bills for many Otago consumers are dropping, thanks to a rush of new players into the electricity retail market. Part of a nationwide trend, small and medium-sized businesses are taking on the big companies.
Almost one in five electricity consumers in Otago switched providers last year, saving an average $188 per household, Government figures show.
An influx of new electricity retailers - many of them small and medium-sized businesses - enticed more than 16,800 of the region's consumers (18%) to make the switch in 2014, an Electricity Authority report shows.
Electricity Authority chief executive Carl Hansen said he was pleased so many local consumers were exploring their options.
''Average savings available to Otago residents are up 16% over 2013 figures, so it's great to see so many consumers shopping around.
''The New Zealand electricity market is very competitive.
''There is a wide range of deals and plans available to suit different families and lifestyles.''
In the Otago region alone, three new retailers entered the market last year, offering locals more options than before, Mr Hansen said.
Otago now had at least 13 retail brands on offer.
''It's important consumers realise that their choice of retailer makes no difference to the reliability of their electricity supply - those outcomes are affected by the performance of their local distribution network and by Transpower, and is the same regardless of which retailer consumers choose.''
Across the country, more than 385,000 consumers switched providers and saved, on average, $162 last year.
The latest CPI figures revealed electricity prices had a 0% annual change - the lowest annual increase since 2001.
Reduced barriers for new retailers entering the market had improved competition in the past three years, the authority said.
Among the changes, new retailers were paying a smaller bond to distributors to operate their networks.
On another front, the authority had blocked retailers from sharing customer information, which had been undermining competition.
Some retailers had been stopping customers switching by offering a special deal, such as a cash payment.
Energy and Resources Minister Simon Bridges said New Zealand households were supplied by one of 27 brands.
''It's encouraging to see more and more Kiwis are choosing to switch to small and medium-sized retailers, with this group growing its market share 23% [nationally] last year,'' Mr Bridges said.
Consumer NZ chief executive Sue Chetwin said new electricity retailers entering the market had a tough fight against the big five power companies - Meridian, Genesis, Contact, Mighty River and Trustpower - which owned 95% of the electricity retail market.
She urged electricity customers to visit Consumer's Powerswitch website to find the cheapest plan available in their area.
The website was ''levelling the playing field'' for new retailers, who were competing against large marketing budgets of bigger companies, she said.
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