Dunedin gets Dannevirke discounts in Mercury 'stuff-up'

Not Dunedin. People in Dunedin were offered power discounts by Mercury Energy that were intended for those customers in the Southern Hawkes Bay town of Dannevirke (main street, pictured) Photo / Hawkes Bay Today

A "stuff-up of major proportions" has seen Mercury Energy offer drastically discounted power to hundreds of businesses in Dunedin that the company says was actually meant for Dannevirke.

Mercury issued an apology yesterday for the campaign, which began with cold calls to Dunedin businesses last month, the Otago Daily Times reported.

Companies were offered, over the phone, large discounts to ditch their existing provider and agree to two-year contracts with Mercury.

However, those who signed up have been contacted again by Mercury representatives this week and told the deal was off because the discount was meant for Dannevirke, in southern Hawke's Bay, not Dunedin.

That was despite several business owners having verbal agreements and written confirmation of the deal from Mercury.

One business owner was offered a 30 per cent discount, amounting to $16,000 a year, and another a 45 per cent discount, amounting to $1200 a year.

"This is a stuff-up of major proportions," said Consumer New Zealand adviser Maggie Edwards.

Mercury Energy communications manager Marie Hosking admitting a "pricing error" that failed to account for local line charges meant about 400 businesses were offered incorrect quotes.

"We deeply regret the error and apologise to those customers affected."

All affected customers were being advised of the mistake, and those who would be better off remaining with their old providers would be automatically transferred back, she said.

Hosking said the legality of withdrawing the offer would depend on the contract's terms and conditions, and she did not know if it breached the Fair Trading Act.

- NZPA