King Country Energy Raises Prices 6%

King Country Energy Raises Prices 6% - Promises 18 Month Price Freeze

The rising wholesale cost of electricity is the reason behind King Country Energy’s announcement today that it will raise electricity retail prices for domestic, farming and commercial customers by 6% from 1 April.

Additionally, the company has promised an 18 month price freeze for these same customer groups. For the company’s average domestic customer, the price rise equates to a $5 rise in their monthly electricity retail invoice.

King Country Energy Chief Executive, Rob Foster, says the company has done everything within its control to mitigate these costs being passed through to customers.

“King Country Energy generates around 47% of the total amount of electricity our customers demand. The remaining 53% we purchase from the wholesale electricity market.

“Our industry has seen the wholesale cost of electricity continue to rise year-on-year by an average of around 6% each year. However, looking at the past six years in particular, King Country Energy’s electricity retail prices have only risen by an average of 2% a year.

“Unfortunately these costs are beyond our control and can only be passed on to our customers,” explains Mr Foster.

Mr Foster said King Country Energy hoped the 18 month price freeze would provide some surety for customers in the medium term.

“From 1 April, we are guaranteeing we will not raise electricity retail prices for our domestic, farming and commercial customers for a minimum of 18 months.

“It is our hope that this freeze will give our customers some certainty that allows them to budget for their electricity retail expenses in the medium term,” he says.

Mr Foster also said he wanted customers to understand the 1 April price rise had nothing to do with a re-alignment of tariffs between different customer groups.

The price rise is solely due to the rise in wholesale electricity prices and now needing to pass this expense on to customers.

ENDS

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