Energy provider Mercury Energy has announced an average price hike of 5.8% to its residential customers, taking effect from April 1.
The price rise from Mercury Energy, of which the government is planning to sell down 49%, includes an increase in charges passed through to customers, which accounts for around 40% of a customer’s bill, to support the maintenance of lines and transmission infrastructure.
This year’s average power price hike to be added to customers’ bills follows Transpower’s hike in transmission charges, which supports major investment in New Zealand’s National Electricity Grid, improving grid security.
Mercury Energy’s general manager James Munro says the price hikes are essential to maintaining a secure supply of energy as population and economic factors evolve over time.
“Investment in electricity infrastructure is essential if New Zealand homes and businesses are to have a secure supply of energy as the economy and population grow, and this has been recognised by the commerce commission,” says Mr Munro.
“Some good examples of this investment are the progress on the North Island Grid Upgrade project and the expansion of the HVDC inter-island link.”
Mercury Energy will not be reviewing its standard residential electricity prices again before April 2013.
Comments and questions
Dont be silly
They are just upping all the prices to get a better deal.
Luv this bit about the taxpayer may be liable for 100% of liabilities /law suits even though they will only own 51% of floated entity
Whats happened to all the money that was fleeced from customers that was supposed to reinvest in the electricity grid.
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