Genesis reveals plan for price hikes in new year
Genesis Energy customers are getting a new-year price rise.
The power generator and retailer has revealed it will increase its prices by 3 per cent throughout the country on January 8, except in Timaru and the Far North, where prices will rise 4.5 per cent.
A Genesis spokeswoman said that was due to factors including wholesale prices, the cost of carbon, and operational and network costs.
She said it had been 12 months since it last reviewed its standard residential electricity prices.
Customers who are on fixedprice plans will not pay the new price until their contract expires.
The move comes after a strong quarter in terms of generation for Genesis, which is putting the company at the top end of its profit forecast of $370 million this year. It reported an 86 per cent profit drop in the last financial year to $20m.
Genesis does not have to inform customers about price increases directly until they are bigger than 5 per cent.
It is common for retailers to increase their prices in April, when lines charges are reviewed by the network. But this year, some networks have flagged the potential for cost reductions in April.
A Vector spokesman rejected the claim that lines-company prices were behind the move.
‘‘We find it a bit rich that they [Genesis] have cited network costs as a factor in their proposed price rises, given Auckland network charges actually dropped on average by about 1.35 per cent this year, and we have proposed to retailers, including Genesis, that average Auckland network charges will drop again next year by a similar amount. Therefore their proposed increase is effectively even higher.’’