NEWS RELEASE 26 June 2014 NZX: MRP
ASX: MYT
Electricity customers deserve clarity in pricing communications: Mighty River Mighty River Power today called for change that would allow greater simplicity in electricity pricing announcements for the benefit of customers. In response to yesterday‟s report from the Electricity Authority into recent pricing communications by the industry, Mighty River Power‟s Retail General Manager, James Munro, said consumers needed to be able to hold decision makers to account over electricity pricing changes. Industry rules could be improved to better achieve this outcome and remove confusion for customers, he said. Mr Munro said retailers are required to notify their customers of changes in total prices, but that better clarity could be achieved for customers if lines companies notified changes in distribution and transmission prices and retailers took no part in that process. “In most cases competitive energy pricing only makes up about half the bill. The rest consists of regulated charges and taxes, which are entirely beyond the control of retailers but passed onto customers through their bill,” Mr Munro said. He said announcement and communication of these changes should come from the distributors (lines companies) themselves. This would mean that what is reported publically in the media matches what individual customers receive in their notifications (from their service providers). Mr Munro said this “relatively simple change” would remove confusion in the reporting of price changes and help the public in holding industry and regulatory decision-makers accountable for their decisions.
ENDS.
For further information: Shannon Goldstone Communications Manager T 0272 105 337
Anna Hirst Head of Investor Relations T 0275 173 470
Mighty River Power is a company with a great New Zealand heritage, and a leader in this country‟s electricity industry. Our core business is focused on harnessing natural resources to produce electricity. Every year the power stations we operate generate enough electricity for about 1 million New Zealand homes. We are proud to be more than 90% renewable and, through our listing on the New Zealand Stock Exchange (NZX: “MRP”) and the Australian Stock Exchange (ASX: “MYT”), to have over 100,000 shareholders alongside the Crown as our majority owner. Mighty River Power supplies electricity to about 1-in-5 homes and businesses across New Zealand, through our flagship brand Mercury Energy and other specialty brands. Our metering business, Metrix, the second largest meter provider in New Zealand, is building an important strategic platform with a growing network of „smart‟ meters and services to electricity retailers and their customers. We are one of the world‟s largest geothermal power stations owners and we are applying our geothermal expertise to explore international growth opportunities.