Monitoring, compliance and enforcement
Saves and win-backs
A review of retailer saves and win-backs to create a fair and competitive market.
Overview
We have amended the Electricity Industry Participation Code 2010 to expand the save protection scheme to cover all retailers. It previously applied only to retailers who chose to opt into the scheme. Losing retailers are also prohibited from targeted marketing to customer that have switched retailers for a 180 days ‘switch protected period’.
Timeline
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18 February 2020
Decision —Ban of retailer-initiated saves and win-backs
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5 November to 3 December 2019
Consultation —Code amendment - saves and win-backs banView consultation -
October 2019
Correspondence —Electric Kiwi and the Electricity Authority
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Project background
The saves and win-backs project was part of a wider programme of work to promote a competitive, reliable and efficient electricity industry for the long-term benefit of consumers.
A ‘save’ is when a customer is switching to a new retailer, but their current retailer persuades them to stay before the switch happens. A ‘win-back’ is when a customer switches retailers, and the losing retailer persuades them to return after the switch happens.
In 2015 the save protection scheme came into force, allowing a retailer to opt in for save protection. The scheme prohibited losing retailers from contacting customers acquired by another retailer with better deals, if the gaining retailer was a protected retailer. The losing retailer could only save a customer within the switching period.
In 2019, the Electricity Authority amended the Code to make the save protection scheme a requirement, thereby banning saves and win-backs to create a more competitive market.
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