11 February, 2013
Electricity price change for Wellington Mercury Energy has announced prices for its residential customers in Wellington will increase by an average 3.3 per cent from 1st April 2013. The increase includes distribution and transmission charge increases of an average 1.5 per cent on the total bill passed through from the local distribution company. The net effect on electricity bills for residential customers will be an average increase of approximately $5.50 per month. Distribution and transmission charges together account for about 40 per cent of a customer’s bill and are used to support the investment in and maintenance of lines and transmission infrastructure. The remaining 60 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, said: “While we have managed to keep the impact of our energy increase in Wellington down to 1.8 per cent on the total bill, to meet general cost pressures in our retail business, the overall impact on customers’ bills is greater due to the regulated lines and transmission increase. “These lines and transmission charges are necessary to support investment and maintenance in the infrastructure that brings electricity to a customer’s door. They are approved by the Commerce Commission and are beyond our control and therefore will, in time, no doubt be passed on by all retailers. Mercury Energy remains committed to providing our customers with great service and competitive prices for their energy supply.” ENDS For more information please contact: Mercury Energy Communications Team 027 210 5337