Mercury launches campaign to snaffle Contact customers

By CHRIS DANIELS

Mercury Energy has upped the ante in the Auckland residential gas market with a campaign to woo customers from its rival, Contact.

Late last year Mercury said it would begin selling gas it had agreed to buy from Wanganui Gas, a small company three-quarters owned by the Wanganui District Council, and one-quarter by Natural Gas Corporation.

This week it begins an advertising campaign targeting gas customers who use Mercury as an electricity supplier.

The dual energy deal is open to homes with gas connections in Auckland City, Manukau City and Papakura.

Mercury general manager John Foote said the company planned to extend the offer to other parts of Auckland this year.

It does not want to offer gas to people who do not use Mercury for electricity.

Customers who take the deal will get a 15c-a-day discount on fixed charges on their bill.

But Mercury would be marketing the dual energy option on a service, not price basis, with both gas and electricity meters being read every month, Foote said.

Despite having been able to supply gas for some time Mercury had been getting its customer switching systems organised, so as to avoid any repeat of problems experienced during the early days of electricity retail competition.

"It's a new business for us and the rules aren't the same as the electricity industry," he said.

"We didn't want people to sign up with us then for us to take forever to make the transition."

One advantage in dealing with people switching gas retailers was that in most cases only two companies were involved, he said.

"There are only really two players, us and Contact, so it's done bilaterally."