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Ari Sargent - Source: ONE News -
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Small businesses may be missing out on cheaper electricity says PowerShop chief executive Ari Sargent.
Sargent told AMP Business that savings gained through shopping around can be quite significant.
"In the work we've done over the last year we've identified that 98% of customers can save on average about 12%," he said.
"That's quite significant if you're spending several thousand dollars a year."
Small businesses are the neglected segment of the electricity sector, says Sargent.
"The commercial and industrial users are sought after customers, they've got large loads and they tend to be able to afford tender processes.
"Residential customers have been supported by government campaigns like the What's My Number campaign."
But small businesses have been treated as "cash cows" suggests Sargent, and power companies won't give a better deal unless they are forced to.
He believes that small businesses could benefit from any government scheme to promote possible power savings, and says that there will be a follow up scheme for businesses including simple online tools such as savings estimations, as well as the ability to tender loads on an online auction.
Business surging
Sargent admitted that Powershop had done well out of consumers being given tools to shop around for savings on their power bill.
The company recently topped the Deloitte Fast 50, a list of the fastest growing companies in New Zealand, with 5280% growth, the highest ever growth rate in the Fast 50's 11-year history.
Sargent told AMP Business the company is looking to an eventual expansion into Australia.
"We've always had a watchful eye on Australia, but we've wanted to keep our service levels in New Zealand high and not take our eye off the ball.
"In due course we'll absolutely explore that market. It's probably another 12 months away before we actively look at the market."
He believes their approach there won't change.
"The fundamentals are the same, you've got a full contestable retail market and customers who aren't being served well by the traditional retail models."
