Powershop

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Powershop NZ
Powershop.png
Type of business Subsidiary
Founded2007
Headquarters
Wellington
,
New Zealand
Area servedIn New Zealand: Auckland, Hamilton, Tauranga, Rotorua, Taupo, Napier, New Plymouth, Wanganui, Palmerston North, Wairarapa, Wellington, Christchurch, Dunedin, Queenstown, Invercargill
Founder(s) Ari Sargent
Key peopleMargaret Cooney, Head of Powershop
Industry Electricity retailing
Products Electricity
EmployeesOver 200
Parent Meridian Energy
URL powershop.co.nz
Powershop Australia
Powershop Australia logo.jpg
Founded2012
Headquarters
Melbourne
,
Australia
Area servedIn Australia: Victoria, New South Wales, South East Queensland and South Australia.
Key peopleEd McManus, CEO
Industry Electricity retailing
Products Electricity & Gas
Employees150
Parent Shell Australia
URL powershop.com.au
Powershop UK
Powershop Australia logo.jpg
Founded2016
Dissolved 2021
Successor(s)E.ON Next
Headquarters
Birmingham
,
United Kingdom
Area servedIn the United Kingdom: England, Wales and Southern Scotland
Key peopleDavid Winter, Head of Powershop UK
IndustryEnergy retailing
Products Electricity, gas
Employees10–50
Parent NPower
URL powershop.co.uk

Powershop is an online electricity retailer founded in New Zealand, and also available in Australia. In New Zealand, Powershop is a subsidiary of Meridian Energy, 51% of which is owned by the New Zealand Government. The retailer operates through an online platform offering pre-pay and post-pay options.

Contents

In November 2021, it was announced that a consortium of Shell Australia and Infrastructure Capital Group would be acquiring Meridian Energy Australia Group, including Powershop Australia. Though subject to regulatory approvals, the transition was due to be completed in early 2022. [1] This development caused an uproar among many customers who opposed the takeover of Australia's greenest electricity provider by a multinational oil company. [2]

History

Meridian Energy traditionally had been a major electricity generator, but only a small retailer. [3] In 2006, Ari Sargent, a veteran of the electricity industry, presented the idea of selling electricity as a "fast-moving consumer item" to Meridian Energy. [4] Initially, they planned to sell electricity tokens in supermarkets, but they abandoned that idea due to cost and instead considered setting up an Internet marketplace.

Sargent, with Simon Coley, a design specialist, founded Powershop in September 2007. In September 2008, Powershop bought its predecessor, Meridian Energy's Marketplace Innovations Business Unit, for NZ$1.26 million in stock. [5] After 14 months of private beta testing, it was made unofficially available to all before being officially launched to the public on February 22, 2009. [6]

Reception

Powershop projected 40,000 to 50,000 customers in its first year. [7] Powershop reached 5,000 customers in October 2009, [8] and 10,000 customers in February 2010. [9] CEO Ari Sargent blamed this on inertia and general distrust of power companies. [10] Energy expert Molly Melhuish claims that because "people are so terrified of their power bills", "a majority of people" wouldn't want to try a new concept like Powershop." [11]

In an article published three days following the public launch of Powershop, The Consumers' Institute of New Zealand tentatively suggested that the service may save consumers money. They stated that they "welcome any initiatives to increase retail power competition", but are clear that "It's too early to tell whether you'll save money by changing to Powershop." and suggest that wintertime indoor heating may completely negate the cost-saving potential of the service. [12]

In a 2009 survey by the Ministry of Economic Development, Powershop was found to be the cheapest electricity retailer for the typical consumer (one who consumes 8,000 kWh/year) in Auckland, Wellington, Christchurch, Dunedin, Manawatū, and New Plymouth. It was the second cheapest in Whanganui and Wairarapa. [13] [14]

In Consumers' Institute of New Zealand's 2009 survey of consumer satisfaction with electricity companies, 92% of Powershop's 111 responding customers found it 'good' or 'very good', and it received zero 'poor' ratings. [15] In 2010, it again received a 92% satisfaction rating. In 2011 and 2012, it garnered a 96% customer satisfaction rating. [16]

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References

  1. ↑ "Shell to acquire energy retailer, Powershop Australia".
  2. ↑ Crellin, Zac (23 November 2021). "'Disgusted' Powershop customers abandon ship over Shell takeover". The New Daily . Retrieved 5 January 2022.
  3. ↑ http://www.electricitycommission.govt.nz/pdfs/opdev/retail/regstats/regstatspdfs/percenticps/Oct09-Appendix1.html Archived 23 May 2010 at the Wayback Machine ICP per retailer 9 October – Electricity Commission
  4. ↑ "Power trip :: Idealog :: the magazine and website of New Zealand creative business, ideas and innovation". www.idealog.co.nz. Archived from the original on 11 September 2010.
  5. ↑ http://www.companies.govt.nz/services-drm-web/RetrieveDocumentServlet.svt?documentId=3595803 [ dead link ]
  6. ↑ Juha Saarinen (17 February 2009). "Website plans to disrupt the power supply market". NZ Herald.
  7. ↑ "Slow take-up to Powershop services". NZ Herald. 26 March 2009.
  8. ↑ Powershop NZ [@powershop] (4 November 2010). "we have just hit the 5000 customer mark - we're stoked :)" (Tweet) – via Twitter.
  9. ↑ Powershop NZ [@powershop] (4 November 2010). "we've popped the corks on the bubbles. we now have 10,000 customers. thanks for your support folks :)" (Tweet) – via Twitter.
  10. ↑ https://www.webcitation.org/5jm6F6m2j?url=http://www.odt.co.nz/news/dunedin/73737/customers-reluctant-switch [ dead link ]
  11. ↑ "New power company promises no contracts, no line charges and no hassle". Campbell Live. TV3. 20 April 2009. Retrieved 20 April 2009.
  12. ↑ "New way to buy power". Consumers' Institute of New Zealand. 25 February 2009. Archived from the original on 19 June 2009. Retrieved 10 June 2009.
  13. ↑ Churchouse, Nick (2 October 2009). "Powershop shown to be the cheapest". The Dominion Post . Retrieved 4 November 2011.
  14. ↑ Quarterly Survey of Domestic Electricity Prices: Updated to 15 August 2009
  15. ↑ "Powershop trial - consumer.org.nz". www.consumer.org.nz. Archived from the original on 6 December 2009.
  16. ↑ "Energy providers - Electricity suppliers - consumer.org.nz". Archived from the original on 6 January 2010. Retrieved 3 December 2009.
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