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Electricity Pricing Moves Welcomed

Energy Minister Pete Hodgson has welcomed Mercury Energy’s initiative in offering bill credits to customers who save electricity.

“Mercury is effectively offering to pay people not to use electricity,” Mr Hodgson said. “This is exactly what I have been suggesting power companies can do to make the electricity market work in the interests of consumers.”

Mr Hodgson said the credit approach created winners all round.

“Consumers can get extra payback for saving power and the retailer can cut its costs while wholesale electricity prices are high. Energy conservation also helps reduce the pressure on supply that is causing higher wholesale prices.

“This is a pricing strategy that makes obvious sense in today’s electricity market. I expect arrangements like this will become commonplace as retailers and consumers realise the advantages on both sides.”

Mr Hodgson also welcomed the news that On energy had cancelled its planned price increases.

“On energy said it would reverse its proposed price hikes when its financial position allowed and I’m pleased to see it keeping that promise.”

Ends

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