Nectr launches Power Perks energy plan with bill credits

Nectr has launched Power Perks, an energy plan for residential customers in New South Wales and Queensland that offers bill credits to customers who stay with the retailer.

Customers receive a $75 bill credit every six months, up to $150 a year. The offer is available to both new and existing residential customers in the two states.

The move brings a loyalty model more commonly associated with airlines, supermarkets and retailers into the energy sector. It comes as power providers face scrutiny over so-called loyalty penalties, where long-standing customers can end up paying more than those on newer deals.

Industry research cited by Nectr suggests 2.5 million Australian households pay an energy loyalty tax for staying with the same provider for a year or more. Other estimates indicate customers who have not switched electricity plans for more than three years pay an average of $221 extra a year, rising to $408 in South Australia and $303 in New South Wales.

Separate modelling puts the national cost of that loyalty tax at AUD $2.9 billion, with households in New South Wales and Victoria carrying the largest share. The Australian Energy Regulator has also found that a typical customer moving from the median market electricity offer to the lowest offer in their distribution region could save from $200 in Queensland to $420 in South Australia.

Against that backdrop, Nectr is positioning the new plan around a recurring credit rather than a one-off sign-up incentive. Pricing on the Power Perks product will also be reviewed once a year in July, which the retailer says will provide more stability for customers.

Hayden Barry, Managing Director, Nectr, described the plan as a response to pressure on household budgets and concerns about standard energy pricing practices.

"Nectr Power Perks is a loyalty program that rewards customers with real savings on their energy bills, putting money back in their pockets every six months for as long as they stay with Nectr," said Hayden Barry, Managing Director, Nectr.

The launch reflects a broader trend in Australia, where loyalty schemes have become a routine part of household spending. A Mastercard study across seven Asia-Pacific markets found more than 90% of Australians take part in at least one loyalty program, while consumers typically hold between eight and 10 loyalty cards.

Airline programs remain among the most prominent. Qantas Frequent Flyer and Velocity Frequent Flyer have a combined membership of more than 26.2 million, while Woolworths Everyday Rewards has more than 14.5 million members.

That familiarity may give energy retailers room to test whether customers respond to retention offers in the same way they do in travel and retail. In a market where switching has long been the main route to lower prices, a loyalty credit offers a different pitch: stay put and receive a defined rebate on your bill.

Barry said the company sees the offer as part of a wider shift in how customers weigh routine household expenses.

"We believe loyalty should be rewarded, and we're excited to bring this approach to energy retailing. We know power bills are top of mind for households, so we've introduced Power Perks to show our customers that they're more than just a number to us - they're part of a bigger energy community, driven by a mission to make energy better for everyone," Barry said.

Nectr entered the Australian retail energy market in 2019 and says it serves more than 40,000 homes and businesses. Alongside electricity plans, it sells solar and battery systems to residential, small business and commercial customers.

Nectr says it has received several Mozo awards in New South Wales and Queensland for residential and business electricity. The latest offer suggests retailers are looking beyond acquisition discounts and towards longer-term customer retention in a market where bill pressure remains acute.

"As household budgets remain front of mind, Australians are increasingly savvy about making their money go further, and loyalty programs are one way to benefit from spending habits. Reward programs can be the deciding factor in where people choose to spend, and we've introduced Power Perks to give energy users an opportunity to turn an everyday cost into long-term credit," Barry said.