Manawatu Standard

Mercury attempted late ‘saves’

- tom.pullar-strecker@stuff.co. nz Tom PullarStre­cker

A second state-owned electricit­y company, Mercury Energy, has said it tried to ‘‘win-back’’ customers on the same day that a government-backed ban relating to the practice came into force.

But unlike Genesis Energy which apologised for breaching the win-back ban due to ‘‘human error’’, Mercury believed it was on the right side of the rules.

The Electricit­y Code was amended on March 31 to bar electricit­y retailers from trying to win back customers who switched to a rival, until 180 days after the customer had switched.

The Government decided on the ban in the wake of analysis that suggested Kiwis might be paying a $400 million ‘‘loyalty tax’’ because large power companies could afford to take customers for granted and wait for them to jump ship before offering them a competitiv­e price. But state-owned power companies appear to have maintained the practice until right up to, and possibly after, the last possible minute.

The Electricit­y Authority said this month it was investigat­ing 228 alleged breaches of the code by Genesis. Spokeswoma­n Kiely Evans said that it had made an unfortunat­e ‘‘human error’’ over the day the rule change came into force, thinking the ban did not come into effect until a day later than it did, on April 1. Mercury Energy said it had also tried to win-back customers on March 31.

A customer contacted Stuff and said that Mercury had called him that day to offer him a $320 credit if he cancelled a switch that he had made three weeks’ earlier.

Mercury spokesman Craig Dowling said its understand­ing of the rule change was that it barred retailers from trying to win-back customers who had switched to rivals after March 30, rather than from attempting win-backs after that date.

‘‘We did make calls on March 31. These were all related to ‘saves/ win-backs’ for customers where the process commenced prior to March 31. We feel we have been compliant with the Electricit­y Authority’s directions,’’ Dowling said. ‘‘We are engaging with them so they are aware of our approach.’’

 ??  ??

Newspapers in English

Newspapers from New Zealand