STOCK EXCHANGE LISTINGS: NZX (MCY) / ASX (MCY)
Additional questions from 2022 Annual Shareholders' Meeting The following online questions from Shareholders were not answered at the 2022 Annual Shareholders’ Meeting. What is Mercury's attitude towards the potential benefits of widespread small-scale 'household' generation & storage as a means of reducing transmission losses, improved security of supply, and system resilience -despite the inherent complications & challenges? We agree that there are several benefits for customers from small-scale household generation and storage technologies. Rooftop solar will reduce monthly electricity bills but installation costs average around $10,000. Household batteries can store solar generation for use in peak periods but will cost around $15,000 installed. Whether these technologies make sense for customers will depend on their own assessment of the benefits (financial, environmental, security etc). While these technologies will reduce network losses, distribution companies set the loss factor for their network periodically so the reduction in losses from distributed generation and battery systems is very difficult to quantify. Batteries like the Tesla Powerwall can provide electricity to the household when distribution outages occur although solar systems normally disconnect and stop generating when there is an outage so do not improve security of supply at the household level. Household energy resilience would improve if solar and battery systems were widespread (noting, the reliability of electricity supply in New Zealand is mostly very good) but the cost of these installations is generally above $20,000 each which for many New Zealanders is a lot of money.
Did Mercury reduce its "per kWh" rates to offset the Gov't mandated removal of Low User Fixed Charges at all? In the majority of cases we lowered customers’ per unit / variable rate to partially offset an increase to the daily fixed charge rate, however this coincided with our annual electricity price increase which also would have impacted the variable rate. It’s important to note that the daily fixed charge only makes up about 13 – 15% of a customer’s bill. We have a number of mechanisms in place to help consumers through this change, including developing a sector-wide support package for customers struggling with the change.
ENDS
Howard Thomas General Counsel and Company Secretary Mercury NZ Limited For investor relations queries, please contact: William Meek Chief Financial Officer 0275 173 470 investor@mercury.co.nz
For media queries, please contact: Shannon Goldstone Head of Communications 027 210 5337 media@mercury.co.nz
ABOUT MERCURY NZ LIMITED We generate electricity from 100% renewable sources – hydro, geothermal and wind. We also sell utility services to our customers through our retail brands – Mercury, Trustpower and GLOBUG. We’re listed on the New Zealand Stock Exchange and the Australian Stock Exchange with foreign exempt listed status. We’re listed on both exchanges with the ticker symbol ‘MCY’. The New Zealand Government (the Crown) holds a legislated 51% shareholding in the Company. Visit us at: www.mercury.co.nz