We have completed a further alignment review of eight retailers’ contracts using a similar approach to that followed in previous reviews. The eight retailers reviewed were those that achieved the lowest level of alignment in our 2012 review.

Of the eight retailers reviewed, the 2014 review showed that:

  1. King Country Energy Limited’s contract now has a high level of alignment with the minimum terms
  2. Pulse Energy Limited and Just Energy have modified their contracts since the 2012 review, but have not reached the high level of alignment achieved by the majority of retailers who were subject to previous reviews
  3. Energy Direct NZ Limited, Hunet Limited, Prime Energy Limited, Stewart Island Electrical Supply Authority and New Zealand Energy Limited have not changed their contract, so remain poorly aligned.*

The results of the 2012 review indicated that around 97% of consumers were on contracts highly aligned to the minimum terms. While we are not considering undertaking further comprehensive reviews at this stage, we will be monitoring the contracts of the seven retailers who have not reached the high level of alignment achieved by the majority of retailers. If the seven retailers have not made material improvements to their contracts by 30 September 2014, we will proceed to publish the outcomes of the 2014 review on the ‘Consumers’ section of our website, and consider taking further steps to encourage improvement of their contracts.

* Following the completion of the 2014 review, Energy Direct NZ Limited advised us that it had released its new contract, which came into effect on 14 March 2014. The terms in this new contract were modelled on those of Energy Direct NZ Limited’s parent company, TrustPower Limited, whose contract fully aligned with the minimum terms in the 2012 review. Energy Direct NZ Limited’s new contract will be reviewed in October 2014.