Increasing dividend (already 13%!), customer losses have now reversed, generation fairly stable, whats not to like? (no reason for GNE to march towards the $2+ mark now...)
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Increasing dividend (already 13%!), customer losses have now reversed, generation fairly stable, whats not to like? (no reason for GNE to march towards the $2+ mark now...)
Bit of a misprint there tj ,but we get what your saying...
losing customers was a big problem for them, they have done a good job reversing that trend. own a small parcel
If Genesis aren't price competitive, they will continue to loose customers. They had to arrest that, and have actually managed to reverse it.
Sometimes profitability will increase when price is reduced due to increased volume. eg sell 10% more domestic units at 8% lower price = more profit
Domestic sales are high margin, so a small margin loss probably isn't the end of the world.
Importantly they are also culling low margin commercial business.
The terms of Genesis's offer is that all the "free" power is charged if the customer leaves inside 12 months. And after 12 months the contract is automatically rolled over while only offering the customer a very limited window to switch out before being automatically re-contracted for another 12 months. This should increase the "stickiness" of the newly contracted customers and further reduce Genesis's churn in 2016. This is very smart and other retailers will surely follow their lead
GNE are automatically recontracting customers with only a small window that they may not have knowledge of?
I am not a lawyer but I have my doubts if the customer can legally be signed into another contract automatically.
Even if the contract is legal Consumer rights watchdogs will get their teeth into this.
Considering the high level of churn in the NZ market and the fact that powerswitch is supported by consumer affairs using a tactic such as this will not go down well.
Churn is being actively encouraged in the NZ market as it is a gauge of effective competition and contracting like this could be viewed as anti competitive.
If GNE are actually trying to contract like this it is a very short sighted desperate move to stop the bleeding.
It is interesting that spot prices changed and were lower when the thermals were running . That points to other generators wanting to get generation away and explains why Huntly is shutting down . It also plays into the hands of flick who buy of the spot for domestic customers. I was with genesis , changed to flick , saved 20% , since and have had better service. When I changed genesis took back $250 which I did not think they were entitled to do but couldn't be bothered fighting it. The behaviour above confirms my opinion of the major generator retailers. as new technology arrives the inclination will be for small consumers to leave the grids. it doesn't take many to do that to affect results.
Relax, it's not being hidden from anyone. I found out when I called their info line. This was simply one of the conditions of the offer. Judging by the increase in subscribers, it doesn't seem to be putting many people off (although it did for me)
I think it is a very smart move by Genesis, getting the consumer to actively opt-out of a roll-over, rather than simply transforming them into regular customers at the conclusion of the contracted period. It uses peoples apathy to hopefully retain customers
I must say, I wasn't aware of the roll-over condition on the latest offer (obviously didn't read it too thoroughly!), so I am happy it was mentioned here. Put a reminder in the calendar to opt out next June!