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Hot Topic NBR Focus: GMO
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Mighty River Power signals price rises

Mighty River Power says its tarrifs are set to rise by April 1 this year and again from July after its obligations begin under the Emissions Trading Scheme.Mighty River Power chief executive Doug Heffernan said prices had been frozen, but a 3% increase o

Andrea Deuchrass
Mon, 22 Feb 2010

Mighty River Power says its tarrifs are set to rise by April 1 this year and again from July after its obligations begin under the Emissions Trading Scheme.

Mighty River Power chief executive Doug Heffernan said prices had been frozen, but a 3% increase on consumer bills reflected increased charges from lines companies.

At a media briefing on its interim results this afternoon, the company said it would pass on costs resulting from the ETS but the market would determine how much.

“The government’s position was it would expect that to flow through to consumers, but we have to wait and see how the market settles down and adapts to that implementation,” Mr Heffernan said.

The company’s retail division, Mercury Energy attracted 18,000 new customers for the six-month period to December 2009, but Mr Heffernan said it expected value to accrete within a two-year time frame.

The degree of competition was the most aggressive it had been in 11 years of de-regulation, he said.

Most of those new customers moved from Contact Energy or Genesis Energy.

Andrea Deuchrass
Mon, 22 Feb 2010
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Mighty River Power signals price rises
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