Power plan comparison: Electricity Authority to end support for Powerswitch, plans AI service
The way New Zealanders compare and switch power plans and deal with power companies looks set to change.
Newstalk ZB understands the Electricity Authority will provide more detail in the coming days about the 'next generation' comparison and switching service it's developing, which uses AI.
It's ending its support of
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NZ Herald
2 hours ago
- NZ Herald
Dairy exports vital for NZ economy despite butter price concerns: Dr Jacqueline Rowarth
The same might well apply to your house. Downsizing parents have been known to assist their children into the family home while choosing somewhere less expensive for themselves. But if an outlander said they would give you twice the money of the valuation of your home, would you then accept it in the knowledge your children would ultimately be better off? There could be $1 million extra to spend on whatever you and they need, want or desire – a different house and a car, holiday or whatever. This is the philosophy behind Fonterra's approach to selling products from the dairy industry. A considerable amount of time and energy is spent marketing and positioning to achieve the best price possible for the product. The money keeps people in employment, funds repairs, maintenance and infrastructure development, and also funds research into new products. The bulk of the export income goes to the dairy farmers so that they, too, can employ people and create vibrant businesses, while also funding farm research through their levy contribution to industry good bodies such as DairyNZ and Beef + Lamb NZ. The income streams give everybody more choice, including the Government through tax-take investment. Every dairy dollar created by New Zealand cows and sold offshore generates over seven times the value in New Zealand and increases employment by over eight Full Time Equivalent positions. The $27 billion in export dollars is $5400 for every New Zealander, which multiplied by seven is almost $40,000. That is just for dairy. It is a lot of packs of butter, or cheese, and certainly litres of milk. The Government's concept of doubling the value of exports underpins its desire (and New Zealand's need) for improved health, education and infrastructure, as well as police, environment, and every other group important to New Zealand's functioning as a developed nation. Prices come down when supply exceeds demand, writes Dr Jacqueline Rowarth. If the export income increases, New Zealanders are better off. Despite this, there has been yet another outcry over the price of butter, with statements that it should be cheaper because New Zealand produces so much of it. Prices come down when supply exceeds demand, or if the product is being used as a loss leader by the seller. Vegetables and fruit tend to be cheaper in peak harvest season because supply is plentiful. The Food Price Index shows increases during winter and drought (and in the aftermath of cyclones). There is no glut in dairy products – they are in demand. Loss leaders are a different issue. They are an inducement to customers to enter a store to purchase the product at a price which might be below market cost. The goal is to stimulate sales of other, more profitable goods or services. The store accepts the 'loss' on the chosen product on the basis that it will make more money on sales overall, as customers are led into the shop… Inevitably, this leads to a discussion on supermarkets and whether the current structure allows sufficient choice for New Zealand customers. Supermarkets have borne the brunt of complaints about rising food prices (overlooking the impact of an increase in wages, power, rates and compliance costs, and the fact about 40% of food is imported). An article published last year showed each New Zealand supermarket was generating over 40% more revenue than US supermarkets. But each New Zealand supermarket was also serving more people. The article suggested having more competition between supermarket companies would reduce the revenue (implication - profit - which is not necessarily the case) for each supermarket. What was not apparent was that by serving more people, the New Zealand supermarkets were offering a service for less than that being charged in other countries. From the data, it appeared that in the UK and Australia, the revenue per person was 40% and 23%, respectively, higher than in New Zealand. When comparing prices here with those overseas, the role of GST, which adds 15% to the purchase price, is often overlooked. Further, unlike farmers elsewhere, New Zealand farmers do not receive Government support (taxpayer money). In many cases in the northern hemisphere, the support is what keeps the business solvent while ensuring domestic food security and a managed landscape. Discussing butter prices, Gareth Kiernan, chief forecaster at Infometrics, has explained that the alternatives are subsidies (which have to be paid for with tax) or regulation. There is a cost to both, resulting in inefficiencies. Next time you need butter (or cheese, or milk or any food), thank a farmer for being the bedrock of the economy. The current Government is grateful; we can be, too.
Scoop
2 hours ago
- Scoop
Electricity Authority Appoints Daylight To Deliver New Comparison And Switching Service
Following a competitive procurement process, the Electricity Authority Te Mana Hiko (the Authority) has appointed innovative technology and creative studio Daylight to develop a new energy comparison and switching service. Tāmaki Makaurau based Daylight is known for its world class behaviour-changing digital products and services. Authority Chief Executive Sarah Gillies says that the time is right to develop a new service that will ultimately empower consumers to take full advantage of a dynamic and competitive energy market. "As our energy system evolves, New Zealanders will have many more choices for how they use, buy and sell electricity," Gillies says. "While this will introduce greater complexity, the potential benefits for consumers and communities are immense. "An engaging and adaptive comparison and switching service will enable consumers to cut through the complexity to get more control over their energy bills. It will also strengthen retail competition and encourage innovation and service delivery." Daylight will deliver the new service by the end of this year and work with the Authority to evolve its capabilities over time, leveraging emerging technologies, improvements in data standardisation and a future consumer-data-right. The Authority and Daylight will also work closely with retailers to ensure new products and services are seamlessly integrated to support consumer choice. "Daylight are well-placed to help us achieve our long-term vision for a centralised service to help New Zealanders with their energy choices," says Gillies. "They bring fresh thinking, a strong track record and impressive technical capability." Daylight CEO Lee Lowndes says: "We're thrilled to partner with the Electricity Authority on such a meaningful project for Aotearoa. Helping Kiwis navigate an increasingly complex energy landscape is exactly the kind of challenge we love." The Authority will continue to support and promote Powerswitch until the new comparison and switching service is launched later this year. The Authority has been funding Powerswitch for several years and values Powerswitch's long-standing contribution to supporting consumer choice. Notes: The Electricity Authority is an independent Crown Entity with the main statutory objective to promote competition in, reliable supply by, and the efficient operation of, the electricity industry for the long-term benefit of consumers. The additional objective of the Authority is to protect the interests of domestic consumers and small business consumers in relation to the supply of electricity to those consumers.
Otago Daily Times
4 hours ago
- Otago Daily Times
Poll: Do we pay too much for car parking in Chch?
By Susan Edmunds You might be paying too much for your parking, new research suggests. Ray White Group head of research Vanessa Rader looked at how New Zealand cities car park prices compared after conducting similar research in Australia. She found what New Zealanders pay for parking varies dramatically, even within cities. On average, she said the daily fees being paid in CBDs was $32.60 in Christchurch, $39.53 in Auckland, and $37.83 in Wellington. But people in Christchurch could pay anything between $10 to $98, while Aucklanders may pay from $12 to $80 and Wellingtonians $15 to $50. She said the range within cities suggested markets were 'highly fragmented' and location, quality and convenience made a big difference to price. In Australia, the difference between cities was much more pronounced than within them, she said. 'People always think of Auckland as being the most expensive but it's not wildly more expensive. 'It's really location sensitive. If people want to be in certain locations they're willing to pay that extra. But if you're just someone that's commuting and you're happy to walk a couple of blocks you can get a much cheaper price and you're still definitely within the CBD.' Rader said Christchurch has the most aggressive 'early bird' discounts at 48.97%, which suggested oversupply or weaker demand fundamentals. 'This mirrors strategies seen in other struggling markets where operators prioritise volume over margin to maintain cash flow. Wellington's more moderate 43.44% early bird discount indicated a more balanced supply-demand dynamic, while Auckland's 43.95% discount suggested healthy competition without desperation.' Rader said booking online would give people good savings on their car parking. Operators had improved their offerings and made it easier to access charging facilities and parking via phone apps, she said. 'You don't need to book days in advance or anything, it's all making it very seamless. Those car parking facilities that have a really easy way of being able to book their parking seem to be doing better.' People who own car park spaces were also using platforms to offer them to other people when they were not in use, she said. 'There seems to be a lot of that happening in Auckland, not anywhere else that I can see.' Christchurch had a 28.2% online discount, Auckland 19.9%, and Wellington 12.8%. She said the shift to working from home had also affected parking operators. But few car parks had changed hands in New Zealand.
