Mercury Energy reveals price rise

1.30pm

Mercury Energy has revealed details of price hikes for its 260,000 residential electricity customers.

There will be an average 8 per cent increase in power bills, with the new rates taking effect from October 1.

Business customers are not affected and all residential users are being posted personalised letters describing the changes.

Mercury is the retail brand of state owned power company Mighty River Power.

National MP Roger Sowry claimed after Mercury Energy's announcement that its showed New Zealanders were paying for the Government's lethargic response to the longer-term energy crisis.

Fellow state-owned company Genesis last month said prices in the Wellington area would rise by an average of 12 per cent.

Mr Sowry said the increases were being blamed on dwindling gas reserves that the Government had known about since taking office.

"It is no surprise that Maui (gas field) is running low and no surprise that it takes more than just the flick of a switch to build new generation," he said.

"All New Zealanders are paying the price for the Labour Government's lethargic response to New Zealand's longer term energy crisis."

Mr Sowry said dwindling gas reserves highlighted the riskiness of the Government's decision to underwrite a new gas-fired power station being built by Genesis at Huntly.

- HERALD STAFF, NZPA