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- Release Date: 11/12/13 10:49
- Summary: GENERAL: MRP: No energy price increase in 2014
- Price Sensitive: No
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MRP
11/12/2013 08:49
GENERAL
REL: 0849 HRS Mighty River Power Limited (NS)
GENERAL: MRP: No energy price increase in 2014
Mighty River Power has today announced a commitment to no increase in
headline energy prices for the Company's residential electricity and gas
customers until at least 1 April 2015.
Chief Executive, Doug Heffernan, says the Company will be holding customers'
energy prices - which make up typically 50-60% of household electricity bills
- at the same level as set in April 2013.
Dr Heffernan says at the time of the Company's IPO the Company forecast no
increase in effective retail prices in 2014. This has now been confirmed in
Mighty River Power's energy pricing schedule for the Company's brands
including Mercury Energy, ahead of the announcement of charges from local
lines companies and Transpower, expected to be set in the next two months.
"We are now confirming that for our customers there will be no increase in
our energy prices for a further 15 months. However there will likely be
changes in customer pricing from 1 April due to variables over which we have
no control that we pass through on our bills - such as transmission and
distribution charges and any increases in metering costs due to regulatory
requirements."
He says the impact on customers' bills of these charges, which are mostly
regulated by the Commerce Commission, will be announced as soon as they are
known and confirmed by the relevant companies.
Dr Heffernan says the 'no energy price increase' commitment reflected the
fact that New Zealand has one of the most competitive electricity markets in
the world, as highlighted by PWC's Leading Energy report released last month.
"Our decision to hold energy prices is the result of a healthy,
well-functioning electricity market that has, by global measures, delivered
positive outcomes for both customers and the country, enabled by the
multi-billion dollar investment in renewable generation capacity by a number
of competing generators over the last few years.
"Retail electricity prices in New Zealand are very much middle of the pack of
developed countries, and consistent with average income levels. Putting this
in local terms, the latest Statistics NZ economic survey shows spending on
electricity is a relatively stable component of household budgets, making up
about 3.6% of total net household expenditure in the year to 30 June 2013 -
down from 3.7% in 2010."
See attached news release.
End CA:00245002 For:MRP Type:GENERAL Time:2013-12-11 08:49:59
