February 18, 2013
Mercury announces prices changes in the Christchurch area Mercury Energy has announced prices for its customers in the Christchurch region will increase by an average of 7.7 per cent, but with most of the energy charge increase delayed until after Winter. On 1 April 2013 Mercury will pass through the Commerce Commission regulated transmission and distribution charges from the local lines company of 4.5 per cent and will increase its energy price charge by 3.5 per cent. These two components combine to an average total bill increase of 3.8 per cent. A further 6.0 per cent increase in the energy charge will occur on 1 November 2013, but is delayed until after higher winter electricity usage has occurred. This increase will equate to an average total bill increase of 3.9 per cent at this time, bringing the average total increase from current rates to 7.7 per cent. After both these changes have taken place, the average net effect on residential customers’ monthly bills will be an increase of $14 a month. Distribution and transmission charges in Christchurch together account for about 35 per cent of a customer’s bill and are used to support the investment in and maintenance of lines and transmission infrastructure. The remaining 65 per cent of a customer’s bill is the energy charge which Mercury Energy determines and which pays for the electricity, metering, and all other costs associated with supplying electricity to a customer. Prices and revenues for transmission and for most distribution companies are regulated under the Commerce Act, and the Commerce Commission approves maximum prices and revenues for them. Mercury Energy General Manager, James Munro, says: “Since our introduction to the Christchurch market in early 2009 we have been one of the lowest priced electricity suppliers in the city,” he said. “We held our prices after the earthquakes and have moved our prices less than all our major competitors in the market since that time, but general cost pressures within our business dictate that we now need to realign our position with the market.” Mr Munro said the company recognised the potential impacts of the increase on its Christchurch customers and sought to minimise the effects of the increase by splitting it into a pre and postwinter introduction.
“Lines and transmission increases are not within our control. They are approved by the Commerce Commission and will, in time, no doubt be passed on by all retailers as we are passing them on this April. However, by holding the majority of the energy increase until November, well after the high electricity use winter period, we will be lessening the impact on our customers,� he said. ENDS
For more information please contact: Mercury Energy Communications Team 027 210 5337