Proof that electricity is overpriced (27 Oct, 2017)

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Proof that electricity is overpriced (27 Oct, 2017)

Postby aardvark_admin » Fri Oct 27, 2017 7:05 am

This column is archived at: http://aardvark.co.nz/daily/2017/1027.shtml

Seriously... is this offer not proof that TrustPower is rorting customers to the tune of $100 a month?

Would you rather have a free $2,300 TV set every month from your over-priced power/internet provider -- or would you rather pay $100/month less and spend the savings as you see fit?

Do TrustPower really believe that most people are too stupid to work out what's going on here -- or are they only looking to sign up stupid people to their over-priced services?
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Re: Proof that electricity is overpriced (27 Oct, 2017)

Postby Weasel » Fri Oct 27, 2017 7:22 am

> which I question just how come Kiwis pay so very much for their power

Because its a for profit retail market.

In reality electricity it should be somewhere near what I pay in the Pacific North West - 10c/kWh, one utility company, no "competition", junk mail, goofy offers, nor complex pricing structures to lure people in..
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Re: Proof that electricity is overpriced (27 Oct, 2017)

Postby Perry » Fri Oct 27, 2017 7:23 am

Bruce wrote: I've written columns before in which I question just how come Kiwis pay so very much for their power, when the majority of it comes from generators that were built and paid for generations ago and which are powered by renewable sources that cost nothing.

Well here's your answer... the power companies are fleecing us to the tune of a free 55-inch UHD 4K TV set every two years. Hell, they're effectively admitting that they're gouging their customers. I'd much rather buy my power and internet from a company that simply says "we'll operate with a fair profit margin and you can buy your own damned TV set with the savings".

Have you overlooked the gummint demands for dividends in your analysis? Of course - given your "from generators that were built and paid for generations ago" - we all know that dividend is the code word for stealth tax. And that's before pondering the implications of GST. The impact on a certain class of society is obvious, to those who will look past the surface. (Not the sycophantic media, of course)

Taxcindarella will fix it, she says:
Labour's first 100-days plan
Pass the Healthy Homes Guarantee Bill, requiring all rentals to be warm and dry

So will the gummint be dropping off loads of firewood to certain tenancies? Giving a electricity stealth tax rebate to tenants? (means tested?) Something else?

Of course, if you own your own home, you're excluded for any such benefits. It's OK for you to be cold and damp as you scrimp and save to pay off the mortgage.

Mad Max took what wasn't broke and fixed it and no one seems to have the courage to "rebalance" that fix. On the hustings, Winston First did mention buying back the power generators, but I doubt we'll hear any more about that. The dividends are too juicy for Labour to forgo.
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Re: Proof that electricity is overpriced (27 Oct, 2017)

Postby Malcolm » Fri Oct 27, 2017 7:31 am

I doubt they will be paying close to $2300 on that TV. They will be getting them in a bulk deal from Samsung. So the cost to them is probably much closer to $1000. They probably also have some very pointed conditions in the fine print of the deal. I think it is common that if you break the contract early you will pay full retail for the TV as a termination fee. So if someone cancels after 20 months they get hit for the full fee. This will subsidise those who stick around for the full 24.
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Re: Proof that electricity is overpriced (27 Oct, 2017)

Postby Stevesub » Fri Oct 27, 2017 7:43 am

Not much profit (Share increase in price or dividends) coming my way from Contact where I am a shareholder when compared with other companies I have invested in. It is the worst of my NZ portfolio and will get the first shares to get sold if I need the money.

Mind you OZ is in a predicament with their energy when the government wants them to can coal fired power stations and replace them with wind and solar??? All good during a sunny day and windy night but, you see where I am coming from. They have no rivers worth damming that they have not already touched, little geothermal and most of their gas is shipped to China at a very cheap rate with not enough left for their own uses.

The power prices in OZ are just as bad as here, lucky we have solar on our house in OZ and a very good feedback rate for unused power thanks to a major stuffup by a previous government there, thank you very much for another 10 years before our contract expires paying us around $2,500 per year for power we generate.

Bruce, at least the internet in NZ is good quality when compared with the OZ offering where the NBN (Internet) stops at 4pm when the schoolies get home in our area - and it is the latest technology - VDSL2 which they say is the latest technology as they cannot work out how to put fibre in at a economical price. Even then the cable is so crap that we get half the speed we get in our NZ home on VDSL2 and we can almost see the cabinet in OZ, and they say the cable is perfect. When I am in OZ, I put a VPN up to work in NZ around 4pm to get some speed back into the net.

So a free TV with half decent internet and power is a good deal when compared with our OZ cousins who get ripped off for power and crap net.
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Re: Proof that electricity is overpriced (27 Oct, 2017)

Postby par_annoyed » Fri Oct 27, 2017 7:54 am

Cynical old bugger that I am, I've long held the same opinion on pricing, fancy giveaways and obfuscated plans with lots of fine print .....

When someone asks why is 'X' so expensive and starts talking about profit margins and gouging, I always think "no it's far, far simpler than all that - the sellers charge as much as they reckon they can get away with and stay in business"

Apple is perhaps the most visible example, marking up their phones by over 100% (I remember reading that a typical i-phone cost about 8 bucks to make, and gets sold for 800 [US])
Drug companies are the other prime example, they cover their arses by claiming it's to get back the cost of research, and get away with it.
I am sure however that these aren't all that much worse than many others.

My response to the shiny new labour plans and goals is the same "hang on, that money has to come from *somewhere* "... I wonder what's going to get cut, or get stealth/visible taxes added ?

Oh yes, obvious........ just add a few more speeding cameras down the WLG and AKL motorways.....
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Re: Proof that electricity is overpriced (27 Oct, 2017)

Postby Muscular Jam » Fri Oct 27, 2017 8:09 am

aardvark_admin wrote:Seriously... is this offer not proof that TrustPower is rorting customers to the tune of $100 a month?
No, you are mistaken. They may be rorting their customers by that amount, but this offer isn't proof.

As Malcom pointed out, they certainly didn't pay retail for those TVs, so its partly proof that TV retailers are rorting *their* customers.

The other error in your reasoning is assuming that the (wholesale) value of that TV is less than their profit from every customer. But I've been a trustpower customer for many years and I haven't noticed any free TVs turning up at my place, So I suspect this is another example of the well known tactic of penalising loyal customers to entice new customers, and *I* am helping to pay for those TVs, not their profit margin.

Although having said that I'm still happy with trustpower.
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Re: Proof that electricity is overpriced (27 Oct, 2017)

Postby hagfish » Fri Oct 27, 2017 8:29 am

I got that mail-out, and spent half an hour fiddling with bills and powerswitch. Turns out I could be saving around $400/year with another company. Alternatively, I could get a $800 telly for about the same as what I'm currently paying. This is likely the *only* way I could get a new telly within the next few years, but I already have a telly, so I guess I'll be switching to that other company.

I don't want to have power and gas and phone and internet with one company - locked in for two years - particularly when the luminaries on Geekzone reckon that company is a bunch of arseholes. And, yes, the early termination fee is the-telly-plus-a-lot.

Whenever an 'offer' is sooo good that it's worth sending people door-to-door, making cold phonecalls, or sending glossy mailouts, I'm always inclined to think that it's bound to be a rip-off *cough*SKYDVSHRV*cough*.
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Re: Proof that electricity is overpriced (27 Oct, 2017)

Postby Malcolm » Fri Oct 27, 2017 11:53 am

Muscular Jam wrote:
aardvark_admin wrote:Seriously... is this offer not proof that TrustPower is rorting customers to the tune of $100 a month?
No, you are mistaken. They may be rorting their customers by that amount, but this offer isn't proof.

As Malcom pointed out, they certainly didn't pay retail for those TVs, so its partly proof that TV retailers are rorting *their* customers.



The costs for Trustpower to do this will be much lower than the big retail store as well. They don't need to pay for a retail presence or hold stock. They will just get the units dropped shipped from the supplier at the end of the promotion. Also no need to maintain a supply of numerous models from different manufacturers giving them much lower overheads than Harvey Norman.
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Re: Proof that electricity is overpriced (27 Oct, 2017)

Postby phill » Fri Oct 27, 2017 12:23 pm

http://www.bbc.co.uk/news/world-australia-41577003

the worst thing is the business leaders ( sic ) here look up to the ones in aussie
then again judging by the ones i have met ... they probably should
( ,,,,,,,, ....... A E I O U use em sparingly theres probably not enough )
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