Energy firm turns away custom

Wellington-based FreshStart has stopped taking new customers, raising questions about the cut-price energy retailer's future.

FreshStart managers did not return calls yesterday, but the company's call centre said it had stopped taking new customers last Friday for at least two weeks while it reviewed the situation.

The company has gained 50,000 customers since it started in Wellington in October, but has upset many by being slow with meter readings, bills and switching customers from other suppliers.

While FreshStart is turning people away, state-owned Meridian Energy said it was attracting thousands.

Last week the biggest power retailer, On Energy, announced power price rises that are expected will lose it more clients.

It and other power companies have blamed Meridian, which generates a lot of hydro-power, for pushing up the wholesale price of electricity.

Meridian said it would not be raising charges to retail customers.

Richard Tweedie, general manager of FreshStart's owner Todd Energy, responded on Monday to criticism of FreshStart's customer service.

"From an industry point of view, it is now a lot better than it used to be. There are incredibly high expectations out there at the moment."

He said FreshStart was restructuring its customer service systems. It would become less reliant on its telephone call centre, instead encouraging customers to send e-mails, faxes or letters.

FreshStart still offered the lowest power charges in Wellington and had no immediate plans to raise prices further, but it remained concerned at high wholesale electricity rates.

- NZPA