Unhappy power customers aren’t switching – raising concerns about competition
02 February 2026
Despite low satisfaction, most Auckland households are not switching electricity retailers, raising concerns that competition in the electricity market is not working effectively with consumers missing out on the opportunity for lower electricity prices.
A recent Entrust Auckland Consumer Electricity Survey shows consumer satisfaction with electricity providers dropped from 74 percent in 2018 to 64 percent in 2025. At the same time, switching rates have fallen sharply from 51 percent to just 32 percent, with fewer consumers shopping around to compare retailers. The proportion of consumers expecting to switch over the next three years has also dropped.
Entrust says consumers are not switching retailers at the rates they used to, despite high levels of dissatisfaction. Confidence in being on the right plan has also declined, yet this has not translated into greater switching activity. Even among those who do switch, satisfaction doesn’t always improve with only 47 percent of consumers saying they were more satisfied after switching, while a staggering 35 percent reporting no difference.
“Consumers should feel confident and motivated to shop around and switch providers if they want to save money,” says Entrust Chair, Denise Lee. “Instead, we’re seeing switching fall at a time when satisfaction is declining.”
The survey findings align with Electricity Authority monitoring data,(1) which shows residential switching peaked in 2018 and has been declining since then.
Entrust says these outcomes should raise alarm bells about the state of the competition in the electricity industry and whether consumers are getting the full benefits competition is meant to deliver.
“Switching rates should be improving over time, not going backwards,” Ms Lee said.
“When consumers are less satisfied and yet switching less, it’s a clear sign competition is not delivering the benefits it should. Entrust has advocated for a long-time that more needs to be done to improve competition in the electricity market. A well functioning and competitive market is needed to make electricity more affordable for Kiwis, and to put New Zealand businesses on a stronger footing,” she says.
1
https://www.emi.ea.govt.nz/Retail/Reports/R_SwT_CDateFrom=20140801&DateTo=20251130&MarketSegment=Res&SwitchTypecode=TR&_rsdr=L136M&ShowAs=Rate12M&_si=tg|consumer-switching,v|3