On Energy raises prices in response to market

15 June 2001

MEDIA RELEASE

On energy raises prices in response to wholesale market

On energy has today announced price rises for its small business and residential electricity customers in response to the very high wholesale market prices.

All variable rates will increase by 2c per unit (includes GST). This is equivalent to 50 cents a day for the average residential customer using between seven and eight thousand kilowatt hours of electricity a year. Fixed daily charges remain unchanged. The price rises will take effect from 1 July 2001 in Waitemata, Wellington, Thames Valley and Christchurch and from 16 July 2001 in Waikato.

Natural Gas Corporation (NGC) retails gas and electricity through the On energy brand. Gas prices are not affected by these increases.

NGC Managing Director John Barton said the increases can be attributed entirely to the unprecedented high wholesale prices of the last few weeks.

“Up until now we have been absorbing these increases, but unfortunately we can no longer continue this position and we regret that we must pass on some of this increase in the price of electricity to our customers.

“We had hoped we could avoid increasing prices but we have no choice. On energy commits to regularly review wholesale electricity prices and as soon as these prices return to normal levels, we will reduce prices to our customers,” Mr Barton said.

On energy advises customers to conserve energy wherever possible to ensure that their energy bill is kept to a minimum.

Mr Barton said a full news media conference would be held tomorrow morning.

N.B.: Tables showing the increases in daily and annual terms are attached. A media conference will be held at Turnbull House, Bowen Street Wellington at 9.00am on Saturday, 16 June 2001.

Summary of July 2001 Price Changes – Indicative Averages

Area Average price change ($/year) Average price change (%)
Small Medium Large Small Medium Large
Waitemata Residential 63 147 300 11% 14% 17%
Waitemata Business 100 298 812 11% 16% 19%
Thames Valley Residential 57 125 297 9% 11% 15%
Thames Valley Business 77 159 599 10% 13% 17%
Hamilton Residential 56 133 287 12% 14% 15%
Hamilton Business 56 133 287 12% 14% 15%
Wellington Residential 58 138 305 11% 14% 17%
Wellington Business 95 628 971 8% 14% 14%
Christchurch Residential 58 170 303 12% 16% 17%
Christchurch Business 99 392 612 10% 14% 14%
Average Residential 59 143 298 11% 14% 16%
Average Business 85 322 656 10% 14% 16%
Overall Average 64 178 370

Area Average price change (cents/day)
Small Medium Large
Waitemata Residential 17 40 82
Waitemata Business 27 82 222
Thames Valley Residential 16 34 81
Thames Valley Business 21 43 164
Hamilton Residential 15 36 79
Hamilton Business 15 36 79
Wellington Residential 16 38 84
Wellington Business 26 172 266
Christchurch Residential 16 46 83
Christchurch Business 27 107 168
Average Residential 16 39 82
Average Business 23 88 180
Overall Average 18 49 101

All figures include GST and are after prompt payment discount (where applicable)
Hamilton price changes effective 16 July 2001, all other areas 1 July 2001.
ENDS

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