Latest news with #ConsumerNZ
Scoop
5 hours ago
- Business
- Scoop
The Sale Of A Top-Rated Power Company Signals A Shrinking Market
Flick Electric has been named New Zealand's top-rated power company in Consumer NZ's latest energy retailer survey - but the win comes with an unexpected twist. Flick achieved a standout satisfaction score of 71% (very satisfied), earning a People's Choice award. Flick was recently sold to Meridian Energy – the parent company of Powershop, which failed to meet the People's Choice standard in 2025. In contrast to Flick, Powershop, a seven-time People's Choice winner since 2015, has seen a notable drop in satisfaction – from 67% in 2024 to just 60% this year, pushing it out of the top tier for the first time in years. 'Flick has consistently rated well in our surveys, so it's disappointing to see it absorbed by a larger player,' says Jessica Walker, Consumer NZ acting head of research and advocacy. 'Flick customers have been typically among the most satisfied. We don't know what the future holds for Flick customers, but there is a risk it will be consumers who will bear the brunt of reduced competition.' The poorest performers this year are Pulse Energy (41%), Contact Energy (44%) and Mercury (47%). Contact Energy and Mercury are two of the largest energy providers in the country and are known as 'gentailers', electricity companies that both generate and retail electricity directly to households. Meridian Energy was the third-best performing power provider in the survey results and notably the highest-ranking of this country's four gentailers. Frank also earns People's Choice, but sector-wide ambivalence is up Frank Energy joins Flick in receiving a People's Choice award, with 65% of its customers reporting high satisfaction. However, broader trends across the industry point to a decline in overall positivity and a rise in customer ambivalence. 'More people are rating their power providers as 'just OK' rather than great,' says Walker. 'It's a clear sign that satisfaction is softening, and the market isn't delivering the value or the service that New Zealanders expect.' Frank's parent company is also a gentailer, Genesis Energy, which falls into the middle-of-the-pack category. Key findings from the 2025 survey Value for money scores have dipped across much of the sector. Fewer problems were reported. Amongst those who did, there was a slight drop in satisfaction with the retailers' handling of issues. Confidence in the electricity market is low. 36% say it's working poorly for New Zealanders. Signs of hardship are rising. More missed payments, overdue fees, borrowing to pay bills and disconnections. Loyalty won't lower your bill - shop around Walker urged consumers not to stay loyal to underperforming providers. 'Power is the same no matter who you buy it from – but price and service vary widely,' she says. 'There's no reason to stick with an expensive or unhelpful provider.' Powerswitch, Consumer NZ's free and independent power comparison tool, helps people find better plans and providers. On average, people who check power options through Powerswitch can typically save around $500 a year. 'With satisfaction falling and pressure on household budgets rising, take action now,' Walker says. 'More than half a million New Zealand households in the past year alone have used the Powerswitch service. It's quick and easy to switch!' Note: Consumer NZ energy retailer survey data is from a nationally representative survey of 1,985 New Zealanders, aged 18 years and over, carried out in March and April 2025. Satisfaction rating shows the proportion of respondents who scored their retailer 8, 9 or 10 on a scale from 0 (very dissatisfied) to 10 (very satisfied). Ratings are for retailers that had 30 or more responses in our survey. View the results here.
1News
6 days ago
- Business
- 1News
Are credit card rewards schemes worth it?
Credit card reward schemes are likely to be scaled back further as pressure goes on interchange fees, Consumer NZ says, but most aren't delivering value for many New Zealanders, anyway. On Tuesday, Kiwibank and Air New Zealand announced they were cutting ties and Kiwibank would no longer offer an Airpoints credit card. Kiwibank pointed to increasing regulation of interchange fees, which are the fees paid by the bank that processes a transaction to the card issuer. The Commerce Commission has already introduced new standards to reduce these fees, which led to a reduction in some credit card rewards in 2022. More reductions are expected to be announced soon, to come into force at the end of the year. ADVERTISEMENT Consumer NZ said its analysis showed that credit card reward schemes were only benefiting big spenders who used their cards frequently and paid off the balance in full every month. People would generally need to spend $25,000 on their cards over two years, and not pay interest on it, to make a rewards scheme worth the fees that the cards charged. "Low spenders, and those with interest-bearing debt, don't benefit from rewards and are effectively subsidising high spenders. We don't think this is fair so we have supported the regulation of interchange knowing this would likely result in card issuers scaling back rewards programmes, increasing card fees or cancelling schemes altogether," a spokesperson said. "Interchange regulation will also reduce the cost for merchants of accepting card payments. This should, in theory at least, result in lower card payment surcharges for consumers. Unfortunately there's no guarantee these savings will be passed on to consumers though so we have been calling for surcharge regulation for a number of years. The commission is expected to consult on this later in the year." Banking expert Claire Matthews, of Massey University, said it was to be expected that rewards schemes would be pared back as interchange fees reduced. "Although it does depend on the level at which they are capped and how that is split between the parties. However, those fees have been a key source of the revenue to fund the rewards so any reduction can be expected to be passed on."
Scoop
6 days ago
- Business
- Scoop
New Zealanders Have Rising Concerns About Insurance Costs As Financial Pressures Mount
Press Release – Consumer NZ New insights reveal insurance is a growing financial burden for New Zealand households, as trust in the industry dips and climate pressures loom. Insurance has jumped to the fourth most significant financial pressure for households, behind housing, food … New insights reveal insurance is a growing financial burden for New Zealand households, as trust in the industry dips and climate pressures loom. Insurance has jumped to the fourth most significant financial pressure for households, behind housing, food and household debt, marking a notable rise from sixth place in October 2024. This shift reflects a growing sense of strain as premiums continue to climb across house, contents, car and health insurance. At the same time, trust in the insurance industry is falling, based on results of the latest Consumer NZ Sentiment Tracker survey of more than 1,000 New Zealanders. 'Insurance is meant to provide a safety net, but for many people, it's becoming increasingly difficult to access. When you add the complexity of policies and the lack of transparency, it's easy to understand why trust in the industry is falling,' says Rebecca Styles, Consumer investigations team leader. Insurance affordability now in focus Consumer's upcoming report on house and contents insurance will delve deeper into these issues, exploring how rising premiums are affecting consumers' ability to access appropriate cover. With the effects of climate change increasing risk and, in turn, premiums, more New Zealanders are feeling financially exposed. 'We're hearing more and more from consumers who feel they're being priced out of essential cover,' Styles says. Interestingly, this comes as climate change concerns are cooling. Fewer New Zealanders now rank climate change as one of the top three most pressing issues — now at 12% (down from 15% in January and 17% a year ago), as more immediate pressures take priority. Cost of living still top concern The cost of living remains the number one issue for New Zealanders, with 65% of respondents identifying it as their top concern – a new high. Financial pressures across housing, food, debt and now insurance continue to weigh heavily. Trust in the insurance sector drops As premiums rise, trust in the insurance sector has taken a hit. More people now say they distrust insurers than trust them – a reversal from previous sentiment tracking and part of a broader decline in trust across sectors such as healthcare and energy. Consumer warns that the decline in trust signals a need for the insurance industry to do more to demonstrate value, transparency and fairness in its offerings. Climate risks compound affordability issues With climate change increasing the frequency and severity of weather events, insurance affordability is a growing concern. Many New Zealanders living in high-risk areas are already facing pricier premiums or are being denied insurance altogether. 'Our upcoming report will highlight how the affordability of house and contents insurance impacts resilience in Aotearoa,' Styles says. Note The Consumer NZ Sentiment Tracker is a quarterly nationally representative survey of 1,000 New Zealanders. It provides a snapshot of public opinion on key consumer issues, including financial wellbeing, trust in institutions and sector-specific sentiment. The winter issue of Consumer magazine has a focus on insurance and will be on newsstands Monday 9 June 2025. The Consumer website includes insurance buying guides for c ar, house and contents and travel.
RNZ News
6 days ago
- Business
- RNZ News
Are credit card rewards schemes worth it?
Photo: 123RF Credit card reward schemes are likely to be scaled back further as pressure goes on interchange fees, Consumer NZ says, but most aren't delivering value for many New Zealanders, anyway. On Tuesday, Kiwibank and Air New Zealand announced they were cutting ties and Kiwibank would no longer offer an Airpoints credit card. Kiwibank pointed to increasing regulation of interchange fees, which are the fees paid by the bank that processes a transaction to the card issuer. The Commerce Commission has already introduced new standards to reduce these fees, which led to a reduction in some credit card rewards in 2022. More reductions are expected to be announced soon, to come into force at the end of the year. Consumer NZ said its analysis showed that credit card reward schemes were only benefiting big spenders who used their cards frequently and paid off the balance in full every month. People would generally need to spend $25,000 on their cards over two years, and not pay interest on it, to make a rewards scheme worth the fees that the cards charged. "Low spenders, and those with interest-bearing debt, don't benefit from rewards and are effectively subsidising high spenders. We don't think this is fair so we have supported the regulation of interchange knowing this would likely result in card issuers scaling back rewards programmes, increasing card fees or cancelling schemes altogether," a spokesperson said. "Interchange regulation will also reduce the cost for merchants of accepting card payments. This should, in theory at least, result in lower card payment surcharges for consumers. Unfortunately there's no guarantee these savings will be passed on to consumers though so we have been calling for surcharge regulation for a number of years. The commission is expected to consult on this later in the year." Banking expert Claire Matthews, of Massey University, said it was to be expected that rewards schemes would be pared back as interchange fees reduced. "Although it does depend on the level at which they are capped and how that is split between the parties. However, those fees have been a key source of the revenue to fund the rewards so any reduction can be expected to be passed on."
Scoop
7 days ago
- Business
- Scoop
Homes Gates, Security Systems Affected By 3G Shutdown
Christchurch woman Elly was shocked to be told that, if she wants her automatic gate to keep working as it is now, she'll have to spend almost $1000 to get it upgraded. The gate runs on the 3G mobile network that is being turned off at the end of the year. She said she wouldn't be too annoyed, except that she only bought the gate in January last year, well after the shutdown of the network was signalled. "We saved for ages for the gate, you'd expect something like that to last." When she posted on social media about the issue, she was contacted by other people facing similar problems. Aero New Zealand, which provides gate access automation, said Centurion G-Ultra and G-Speak Ultra devices would not have any GSM functionality after the end of this year. General manager Anton Neveling said initially there had been hundreds that needed to be updated but there were now only a handful remaining. He said the detail of the upgrade procedure would vary according to the installer doing the work. "Since early 2024, we've actively promoted 4G upgrade campaigns to our installer network and have only sold 4G-capable devices for the last two years. The majority of our install base have upgraded since the notices started going out . The telcos' 2G/3G shutdown was initially planned for end of 2024 so who knows even if they will keep to the end of year new deadline, however most of our clients already upgraded in the past 12 months, and the remaining ones will upgrade if they want to in the next six month as some just simply use their remote to open the gates. "In our product space, the 3G shutdown does not affect the gate, remote control, or keypad operation, only app-based functions such as push notifications, SMS alerts, or opening via a mobile app." His business had stopped selling the 3G gates in 2023 with the expectation that the shutdown would happen. But it was possible that Elly's had remained in a warehouse until it was installed. "Something I believe is a more pressing concern across other industries - luckily not us - is the impact on the security alarm sector, where many systems still rely heavily on 2G and 3G networks for connectivity. Numerous alarm providers are facing significant upgrade programs, as these systems often stop working entirely when the network is retired." Nick Gelling, product test writer at Consumer NZ, said the shutdown of the 3G network was announced in 2022 and businesses selling products relying on it should have known it was coming. "If you purchased something in the last few years that will stop working after 3G is shut down, you can ask the retailer to put it right under the Consumer Guarantees Act as the goods are not fit for purpose or of acceptable quality. The retailer has to provide a repair, replacement or refund. The only exception to this would be if the retailer clearly warned you the product would stop working when 3G is shut down at the end of this year. "If you don't have any luck with the retailer, you can lodge a claim at the Disputes Tribunal." Telecommunications Forum Chief Executive Paul Brislen said there were a huge array of devices that communicated with the outside world and people needed to determine whether they used 3G and needed upgrading or not. "Devices I've come across so far include some agri-tech equipment, lifts, solar arrays, health monitor alarms, fleet tracking systems and quite a lot else besides. This is the first I've heard of gates, though. "The telco sector started talking to equipment makers about this sort of dependency several years ago and has been working with a number of technology providers to make sure they're supporting customers. For some it's as simple as swapping out the communications module or upgrading the device, but for others the modules are embedded in the product and customers will need a new model to continue operating." He said his organisation had written to retailers reminding them to double-check to make sure products they were selling would continue to function after the shut-off. The Commerce Commission said it had received nine inquiries relating to products' workability after the 3G shutdown. "Under the Fair Trading Act, traders should not mislead consumers about the products and services that they sell. Traders should inform consumers of any upcoming changes when selling devices that may no longer work once the changes to 3G are implemented. "If consumers are not informed of these changes at time of purchase, this could raise concerns under the Fair Trading Act. Consumers also have rights under the Consumer Guarantees Act (CGA)."
