Dozens of Powershop customers have contacted the Herald with complaints about rising bills, app problems and lengthy customer service waits after Friday’s report on the electricity retailer.
In April, the company launched Powershop Lab and confirmed power prices were increasing.
A Facebook group called Powershop NZ Complaints has attracted more than 5000 members.
Customers have reported bills they say were two, three or four times higher than previous periods. Others complained about difficulty reaching customer service and understanding their billing information.
One customer told the Herald their account had shown a meter reading of almost 100,000 kWh over 24-hours
“This would have equated to a power bill of around $27,000 for that day had they followed through and billed us,” the customer said.
“I can assure you we are not operating in competition to Tiwai Point and nor do we have a data centre on our property.”
Other customers repeatedly complained about a lack of communication from Powershop.
“The problem is mostly lack of communication. I’ve tried live chat, email, phoning and Facebook, but no one gets back to me,” one said.
Another said: “I have seen a big jump in my electricity bill since we moved to the new app. I have been emailing and calling and trying to get hold of Powershop for weeks now to get it sorted”.
“No one has replied to my email, chats or phone calls.”
Another customer said the new app made it difficult to compare current electricity use with previous months and required them to consult emailed bills for historical information. They also said they were paying more than before.
“It’s such a frustrating time as a customer,” they said.
Another said the app was confusing and difficult to use, while their bills had increased substantially.
“When I queried why my bills were so high, I received no reply. After years of being with Powershop, I am going to switch to another supplier.”
Powershop, owned by Meridian, has about 6% of the retail electricity market. The company said it lost more customers than usual during the first two months of the app rollout.
Meridian chief customer officer Lisa Hannifin wouldn’t be interviewed by the Herald.
In a statement, she said: “August is one of the coldest months of the year and we know people are paying close attention to their electricity bills”.
“Winter bills can sometimes take people by surprise, and we understand this can be concerning,” Hannifin said.
The Herald asked for comment on readers’ experiences, particularly frustrations with customer service and large bill increases.
“Every customer’s situation is different, and we encourage those who have questions or concerns to get in touch with us directly so our team can review their individual circumstances,” Hannifin said.
“There are a range of factors that have influenced Powershop bills over recent months, including changes in lines and transmission charges (which differ significantly by region), the increase in energy charges that took effect on 1 April, household usage and the extent which customers are securing discounts by purchasing pre-paid Power Packs.”
Hannifin acknowledged some customers had experienced problems with Powershop’s new app and said improvements were continuing.
“We’d like to reassure customers that app performance is completely separate from the pricing and billing of electricity,” she said.
“While the app may have had an impact on some customer experiences, it has not had any impact on the size of their bill.”
Consumer NZ said it received a record number of responses after asking people whether they had experienced large increases in their Powershop bills.
Some members of the Facebook group said they had taken their complaints to Utilities Disputes.
The free, independent dispute-resolution service said it did not comment on individual providers.
Its latest annual report recorded 13,554 complaints across the utility schemes it administers, a 62% rise from the previous year – an average of about 55 complaints per working day.
The figures cover utilities generally and are not specific to Powershop.
There’s also been a whopping 500% increase in complaints in the past five years.
Across all complaints received by Utilities Disputes, customer service was the most common issue, followed by billing.
Consumer NZ advised customers to use its Powerswitch comparison service to check whether they could get a better deal.
It said its data showed hundreds of people had used Powerswitch to move away from Powershop in recent months.
Katie Bradford is a Senior Correspondent at the Herald . She has been a broadcast journalist for over 20 years and was based in the press gallery for 10 years. She specialises in politics, business and Auckland issues.
